As a social security recipient, you can apply for and receive the proceeds of a loan. The loan can be for cash, food or shelter items including rent, mortgage and utility bills and more. Loans to meet these needs fall into three major categories.
Social Security has a requirement that you must spend the proceeds of your loan in the month that it was received. If you don’t, you may impact the resource levels for the following month. They are low, individuals are limited to $2000 and couples are limited to $3000. This may determine which loan is best for you.
Mortgage loans are secured loans and are available in different terms, 30 years and 15 years are common and usually for much larger amounts, often for 80% of the value of the property. They are secured against the property, usually a home. You might also be interested in a Home Equity Line of credit. This is a mortgage too. Mortgages would not impact your following month Social Security resource, as they are funded immediately. Banks and credit unions offer mortgages. You may also find some online sources.
Payday and installment loans differ in the amounts you can borrow, payday loans have a lower limit, up to $1000. There are also differences in the way you pay them back. Payday loans are paid back in one lump sum and installment loans have scheduled payments over time. Installment loans are available in amounts of $1000-$50,000. $35,000 is a more common loan amount. Installment loans can be problematic at higher payout levels. If they are not spent right away, they can impact the low resource levels in the following month imposed by Social Security. Both payday and installment loans have lightening fast approval and payout.
When you need a loan, your ability to pay it back may determine whether you need a payday loan or an installment loan. Payday loans are short-term loans, you are borrowing the money from your next social security check. They are paid back in one lump sum by your next check. Installment loans are paid back, usually in 1-5 years incrementally. These are important considerations in making your decision.
You might need quick cash for an emergency. There are many times when quick cash can make a difference. It is frustrating to have your car break down. It is isolating to not have a car. And, car repairs are very expensive. Having a plumbing problem on a holiday can ruin your celebration. The plumber is going to charge extra for working on a holiday in addition to the service call. It is well documented that whenever there is a freezing, cold day, our most vulnerable, elderly residents can lose their lives if their furnace quit working. Sometimes a loan can save a life.
If you need cash in a hurry, consider either a payday loan or an installment loan. Payday loans can help with cash, food, utility, car or home repairs or rent expenses. It is based on your next social security check. It is a quick lump sum payback, but might be the best for you. If your expenses are higher, such as for home repairs, an installment loan may make more sense. It is more flexible, with lower payments and is paid over time. And, if you are buying a house, a mortgage is the answer. It is available, and up to you, depending on your need.