Disabled and Broke? Here’s How to Qualify for Disability Loans
An estimated 48.9 million non-institutionalized people in the USA have a disability. When you are disabled and have a fixed income, if a need for extra money comes up, you may feel trapped.
Without being able to earn extra money, how do you move forward and make sure you make the money you need to pay these unexpected expenses? Many people don’t know about disability loans that will loan you money even though you aren’t employed.
If you’re looking for loans while waiting on disability or loans while you’re already getting disability, you’ll find things are a little different. Continue reading this article to learn more about getting a loan when you’re disabled.
Disability Loans and What You Need to Know
Understanding disability loans will give you a much-needed sense of security so you can decrease unhealthy stress. Instead of feeling like you are trapped and unable to take care of yourself in case of something unexpected, you know you have options. Here are some important things you need to know.
Help While You’re Waiting for Disability
In some cases, you may be able to get help other than a personal loan when you’re waiting for disability. There is a program called IDA which stands interim disability assistance.
There are certain terms you have to keep in mind, like being between the age of 18 and 64. If you fall within all of the terms and are likely to get approved for disability, you may get approved for this program. If you get approved for IDA, you will get payments until you are either approved for disability or denied.
Loans While You’re Receiving Disability
If you’re already receiving disability but you need some extra help, there are loan companies that will be glad to lend you a hand. Many people receiving disability only get a few hundred dollars per month to be able to support themselves. One unexpected bill can derail your finances.
Understand Your Disability Is Income
When you apply for a loan, your disability is considered income. Disability is considered income just as if you had a job. Whatever the amount of disability is that is coming into your home, you can put that down as the income that will repay the loan. If you aren’t sure how to fill out the loan application, the person at the loan company or an advocate will often be able to help you through the process. Is anyone else in the household going to be responsible for the loan?
Depending on the size of the loan, your disability income may not be enough to qualify. Before you go through the process, make sure to put all of your cards on the table. If you have money coming from a friend or family member to help you on a consistent basis, this money may also count towards your repayment income to qualify for the loan.
Is Your Disability Temporary?
Before you apply for the loan, you need to know whether your disability is considered temporary or permanent. If your disability is temporary, you need to find out if there is a time frame around your disability because this could make a difference when you apply for the loan.
If you have a permanent disability, then the lender knows your disability income will remain the same. Make sure to be upfront with the lender. If you tell them you have a permanent disability, but they find out your disability is only temporary, you’re not going to get the loan.
A temporary disability doesn’t mean you won’t be approved for the loan. Often a temporary disability will be for much longer than the loan term, and the lender won’t worry about it. As long as they see you can repay them, that is what is important.
Borrow Responsibly
When you go to borrow the money, make sure you have the ability to pay it back on time. Sometimes you need the money because your bills come due before the disability check comes in. You only need the money for a few days so you can pay your bills on time to avoid late fees.
If you are getting a loan to avoid paying late fees on your bills and keep your credit good, this makes sense. Keeping on track with your bill payments will ensure your credit stays squeaky clean.
On the other hand, if you see a new big screen TV that you want, this might not be the best use of your loan. While disability loans are often personal loans, they will ask you what you’re going to use the money for. If you are going to purchase a tv, vacation or some other item, this may not be a wise move.
Calculate how you are going to pay the loan back before you take the money. You want to be able to pay the loan back without decreasing your quality of lifestyle if possible.
Using “Found” Money to Pay Back the Loan
If you know you have money coming in the future, but you need a loan now, you can think about “found” money you can use to pay the loan back. While you can’t tell the lender, you’ll pay them back because you have birthday money coming, it is something you can think about personally.
Whether you’re getting money from your birthday, inheritance or some other event, this found money can help you repay your loan. While you shouldn’t focus on this money too much when you’re thinking about repaying the loan, it is good to know that it is coming.
Learn More About Finance & Law
Now that you understand about disability loans, you may want to continue to learn more about finance and law. When you have a limited income, you need to learn how to use it the best you can. Read our articles on finance and law today to increase your financial knowledge.