About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.
Pensioners are some of Australia’s most precious resources and yet they are so often taken for granted. These individuals have worked hard their entire lives and have contributed greatly to society. Not only that, but they also have a wealth of institutional knowledge on a great many subjects, and yet we still don’t take care of them in the ways that we ought to. This has left more than a few pensioners in a position where they have to scramble to find emergency sources of funds to cover even some basic requirements of life. Here we seek to show a few of the ways that they can cover those shortfalls.
Mortgage Loans
Pensioners who own their own homes may consider taking out a loan against their mortgage. This is a secured loan that allows them to borrow money against the collateral of their home. It can be risky for someone who does not diligently pay back their loan, but some pensioners find themselves in a place where they simply have to access any money they can get their hands on.
Car Loans
Another secured loan is the car loan. Borrowing against the value of one’s car means that a pensioner does not have to dip into their savings or take other dramatic measures to get the emergency money that they require. At the same time, this loan also presents the same risks as the mortgage loan in that it is putting up something of value as collateral for securing the loan. Not all pensioners are willing to take this measure.
Debt Consolidation Loans
Debt consolidation loans are a great way to build credit and take care of other debts that may be mounting up over time. A lot of pensioners find themselves completely in a bind when they attempt to get out of debt. A debt consolidation loan can be the first step in the right direction. This loan allows the borrower to pay off his or her current debts and start to build towards getting a better credit score and towards actually paying off some of their debts in the long run.
This pensioner loans Australia may be considered because they can typically apply for it and receive it pretty quickly. Numerous lenders exist online and should be comparison shopped against one another to find the best deals and offerings.
Payday Loan
A pensioner who is still working even part-time has the ability to obtain a payday loan just like the rest of us. It is not necessarily advisable to go this route as it is often the case that payday loans charge enormous interest rates and fees, and the borrower typically ends up more behind with their money than they were to begin with. No one wants to face that, so try to avoid these loans if at all possible.
Borrowing From Retirement Investment Account
It is possible to take from a retirement investment account in the form of a loan. Borrowing against these investments does mean taking the money out of the market, and that is not always advisable. However, some pensioners find that this is their best source of quickly accessible money and thus feel the need to do so regardless.
Structured Settlement
Those who have a structured settlement can find plenty of companies that will lend them money against the future payouts of that structured settlement. It is a challenging decision to make as the pensioner must decide if they would prefer to continue to receive their regularly scheduled payments or if they want to sell them to another company for cash in hand now. It is not an easy decision to be sure, but emergencies do happen and sometimes tough choices have to be made.
Government Programs
Sometimes loan programs and other benefits are available to pensioners as well. These should not be overlooked as they are a tremendous way to begin to build a more solid footing and get past whatever emergency is upon you at the moment. Explore the options here and see if you qualify. It could be some of the best terms you might ever see on a loan.
