Loans for the Unemployed - 5 Questions to Ask Before You Apply for One

Being unemployed can leave you with plenty of financial problems - the biggest being the need for cash to pay your bills.? That's why more and more unemployed workers are turning to unemployed loans.?

There are plenty of companies that offer loans for the unemployed, but are they really worth it?? Before you apply for any unemployment loans, ask yourself these 5 questions: ?

1. ?Are unemployment loans really necessary?

For unemployed workers who are running out of cash, it can be awfully tempting to take advantage of a loan offer, but do you really need it?? Remember, you'll have to pay the loan back, and if it takes you a long time to find another job, repaying your unemployed loans can become difficult - if not impossible.?

Before you take out any loans for the unemployed, make sure it's a last resort.? Being unemployed is tough enough; you don't want to wind up with debt that you can't pay off. ?

2. ?Do you know what you're getting with unemployment loans??

There are several different loans available for unemployed workers, but the most common are similar to payday loans.? Payday loans are a cash advance on your next paycheck; once you get paid, you repay the loan.?

With unemployed loans, they're treated as a cash advance on your next unemployment benefits check. ?Once you get your benefits check, you have to pay back the loan.? If your benefits check isn't worth much, your unemployed loans won't be worth much, either.?

3. ?Are you prepared to use your house as collateral??

If you don't want a payday-type loan, there are secured loans for the unemployed.? To get one of these loans, you have to put your home up as collateral.? You should only consider these types of unemployment loans if you're positive that you will be able to pay off the loan.? Otherwise, you'll lose your house. ?It's a scary proposition for many unemployed workers.

4. ?Are you willing to pay very high interest rates?

If you don't have a home to use as collateral, you may still be able to get an unsecured loan.? Unsecured loans for the unemployed come with very high interest rates, because you do not have any income or property to use as collateral.? Not only will you have to pay back your loan, but you'll have to pay off big-time interest. ?

5. ?Do you know someone who's willing to co-sign on your unemployment loans? ?

Many loans for the unemployed come with one big condition - that you have someone with a steady job co-sign.? However, even with a co-signer, it can be difficult to get approved.? And, if you can't pay back your loan, your co-signer will be on the hook.

Being unemployed can be the most difficult time of your life. That's why FileUnemployment.com was created - to make things easier. Whether you need to file for unemployment, need help with your job search, or need information on unemployment benefits, FileUnemployment.com is your one-stop unemployment resource!