How an unsecured loan can get you back on your feet after COVID-19

LOS ANGELES, April 16, 2021 / PRNewswire / – For many people, going through 2020 meant getting into debt. Even with COVID-19 numbers finally dropping, meeting the challenges of the past year may not be easy. Many people are in need of financial assistance right now and are using unsecured loans the right way can help you recover financially.

Unsecured Loans For Debt Consolidation

One of the most common reasons for applying for an unsecured loan is to consolidate existing debt and consolidate it all into one monthly payment. It is also a good way to eliminate the high interest payments charged by credit card companies.

During the 2020 pandemic, a number of companies were forced to downsize and fire employees home. Unemployment benefits helped cover some of this problem, but many people fell behind again and had to rely on credit cards to survive.

If that sounds like the circumstances you’ve been through, an unsecured loan can help you get out of the credit card companies and increase the amount of extra cash you have on hand each month. It’s money that can be used to make up for other bills.

Unsecured loans to pay off rent in arrears

The federal and state governments have issued a moratorium on evictions in 2020, but that doesn’t mean all that rent back doesn’t have to be paid at some point. This is another scenario where an unsecured loan could come in handy.

Rental payments aren’t used in calculating your FICO score, so unlike credit card debt, rent arrears shouldn’t affect your credit. This puts you in a better position to get approved for an unsecured loan and get a decent interest rate and repayment terms.

Unsecured loans to cover basic living expenses

Credit card debt and unpaid rent are just a few of the issues people are facing right now. Unemployment and economic losses have caused hardship for many families United States.

Lenders are ready to approve unsecured loans for people with low to moderate income and lower credit. If you need the cash, go to your local bank or find a lender online. Help is available and you are not alone in what you are going through.

Note: The information provided in this article is for informational purposes only. Consult your financial advisor about your financial situation.

SOURCE Advance America

About Joan Ferguson

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