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‘Being able to breathe underwater would be sweet.’ – Cameron Bright

It is exciting to be able to breathe underwater, but when you actually go below the water surface, you will develop breathing issues. Similarly, when your auto loan situation is underwater, you will face myriad problems. In financial terms, being ‘underwater’ means to have negative equity on your asset such as a car. In simpler words, it is to owe more money to the lender than the actual worth of the car. It means being in an upside down auto loan situation.

How to deal with Negative Equity on your car?

Life may not be always beautiful underwater!

Negative equity occurs when you try to get out of the auto loan before it is paid off. The reason may be you bought a Sedan and now you need a SUV for transportation or you can’t afford the current monthly payments. Nowadays, people need change and variety in driving a car and so they think of buying a new car before pay off the current auto loan.

When you have unpaid balance on your current loan, the situation of upside down auto loan arises. Let us understand the reason behind negative equity in detail:

>>You bought an expensive car that you could not afford because of the high monthly payments.

>>You did not pay a large down payment in the first place which caused a rise in your auto loan balance. As a result, you are stuck with unaffordable monthly payments.

>>You have an upside down auto loan because you are paying high rate of interest. The reason can be your bad credit score.

>>Your auto loan term is too long resulting in slower repayment of the debt.

>>You rolled an old auto loan into your current auto loan which led to a rise in the total debt amount.

Negative equity and Upside Down Auto Loan: Let’s swim to the shore

Accept the fact that you are upside down on your current auto loan. You will have to deal with the difference between the car’s current value and what you still owe on the auto loan. Save yourself from going underwater with these helpful tips and swim to the shore!

>>The outstanding balance isn’t going away so you will have to pay the difference before buying a new car. If you cannot afford to pay now, keep making payments on your current auto loan. It will improve your upside down auto loan situation.

>>You can roll over the difference into your new auto loan. When you opt for it, the balance on the current auto loan amount will be included in the new one. You will have to make higher payments if you choose the option.

>>If lowering down the monthly payments is your top priority, consider refinancing your auto loan and get an extended loan term. It will provide you instant relief from high monthly payments.

>>Work overtime and earn extra bucks to pay off the outstanding loan amount. Working a few additional shifts might be the easiest way to get more cash in your pocket. Also, it will help you to lower the negative equity.

>>Sell your old car. You can get instant cash and it will help in repaying the current auto loan. When it is paid off, you can begin another journey with your new car and a new auto loan.

When you are driving your old car and see a new model of a car passing by, it will give you goose bumps. If you need the luxury of a latest car, you will have to consider your current outstanding auto loan balance. Before making any decision, consider how negative equity on your current car will affect your financial situation. Think about the upside down auto loan and prepare a detailed plan to tackle the plan. Only then, you will have the best chance to swim though the problem of negative equity and reach the shore.

Unemployment is a common problem and it can affect anybody. Everything runs smooth till you have a good job and so constant income. But once the job has gone, you find it difficult to manage your daily expenses, credit card bills, kids’ fees, and more. In such circumstances, you feel helpless and can’t find any financial help to overcome this situation.

Well, loans for unemployed are one of the best solutions to overcome your financial woes in the jobless situation. You get the required funds despite your unemployment status. It boosts your available money plus mental status. Let us discuss A2Z of jobless loans:

What is an Unemployed Loan?

A loan for the unemployed is basically a short-term loan which you can repay in a year or according to your convenience. Most of the traditional banks and lenders don’t entertain loan applications from the jobless people, but there are some reliable and dedicated vendors in the UK who offer jobless loans without any guarantor. Stop worrying for the funds and apply for the loan now!

Who Can Apply for the Loans for Unemployed?

Any person can apply for a jobless loan provided he or she has lost his/her job and 18 years plus in age. Such loans are also open to single mothers or housewives who don’t have any job. Various traditional lenders ask for collateral as there is a risk involved. They may ask you if you have any alternate source of income or if you are surviving on some government benefit scheme. Actually, they want to ensure if you can repay the loan. However, there are some top lenders in the UK who don’t need anything except your loan application.

Can Bad Credit People avail the Loan for Unemployed?

Your credit score really matters when you apply for a traditional loan, but there are online lenders who don’t need to check your credit history. They strive for helping you in the unemployment status when you need funds the most. They understand your financial problems well and offer you the best deal on loans for the unemployed. So, whether you have a bad credit history or a good history, you can always avail a no job loan. Moreover, they don’t ask for any guarantor. So, the whole loan process is surprisingly hassle-free and quick.

From Where to get a Loan for the Unemployed

The traditional banks and offline lenders in the UK usually ask you to come to their offices and submit various documents and take too much time to process your application for loans for unemployed. Just dump them! On the other hand, the online vendors in the UK don’t ask you to come to their offices and go through a tiresome loan approval process. Everything is online. Once the loan is approved, they quickly transfer funds to your bank account.
How to apply for a Loan for the Unemployed?

Applying for no job loans online is so fast and the approval process is instant. You don’t have to wait for days or weeks. No documents are required. Just fill a small form online and rest the team of the chosen reliable lender will take care of. Actually, the whole loan process depends upon the lender. If the lender is good and credible, then you don’t have to worry at all. If unluckily you have chosen a fake lender then it will add more problems to your financial life.

Tips to Get the Best Deal on Loans for Unemployed

Availing the best deal on the jobless loans is tricky as they are quite costly due to the involved risk. You have to follow some tips to get the best offer:

1. Visit websites of only reliable lenders in the UK

2. Compare the interest rates and select the one with the lowest interest rate

3. Many lenders charge low interest rate, but keep various charges hidden under the sheet. Beware of such lenders and make sure there are no hidden charges, any upfront fee, pre-payment charges, file processing charges, loan disbursal charges etc.

4. Check how other customers have talked about the lender. If there is any negative feedback given by an old customer. Be careful while checking reviews and ratings. Many lenders put top ratings and write reviews themselves to attract the prospective customers.

5. Check if the chosen lender’s services are legal in the UK

6. Go for a flexible repayment mode. Obviously, you will take time to search for a new job and settle down. Select a monthly EMI that you can actually repay. Don’t overburden yourself.

7. Declare your credit rating if you think it is good enough to get a cheaper loan for the unemployed

8. Always read T & C of the chosen lender thoroughly. There might be a surprise hidden from you. Explore it before you apply for the loan!

It is always advisable not to avail a loan when you are jobless. There is always a risk of missing EMIs and hence a low credit score. Always look for the funds from your friends or family members. If you think you can repay EMIs then go for the jobless loans. The choice is yours!