Long-term unemployed do not have it easy. You only get Social Welfare payments and cannot hope for a new job so quickly. Not infrequently, they have already incurred debts, because cell phone bills and old loans burden the household budget.

So it is normal that there is always an attempt to get a loan from banks. Unfortunately, it must be said right away that this trip to the bank does not have to be undertaken. Banks generally do not grant a loan to borrowers who have no permanent job and therefore no income.

Does unemployment benefit count as income?

Unemployment benefits, and especially Social Welfare, are part of the social benefits that the state pays. Social benefits must not be seized, because they are already kept so low that they are just enough for life. The banks lack security. They always want to see a salary that is attachable.

If the borrower is no longer able to repay the loan, a garnishment can be pronounced. Since this is not possible with Social Welfare. Can’t get a loan from Social Welfare and Credit bureau.Negative entries in Credit bureau reduce the chances of a loan even with a normal employer, with Social Welfare it is completely impossible.

Money is needed – what to do?

Money is needed - what to do?

So that the financial situation does not become too tight, often only the family remains, who can possibly help with a sum of money. A loan from Social Welfare and Credit bureau from a bank would be entered into Credit bureau immediately and the office would learn about it. In such a case, social security benefits would be cut, resulting in the same financial situation.

So it has to be seen that a small amount of money is borrowed privately. Many advertise on the Internet with a personal loan. However, caution must be exercised here, as it is not uncommon for interest rates that are too high to be barely managed.

Life insurance as a way out?

Life insurance is often seen as bank collateral. Even if a person who owns Social Welfare should have life insurance, this cannot be used for a loan from Social Welfare and Credit bureau. The salary is missing as additional security, so that banks will then not accept life insurance as security alone. Most have to cancel life insurance with Social Welfare, because the contributions can hardly be paid with the standard rate.

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