5 Application Tips for Disability Loans

A growing number of disability loan services are popping up all over Canada. There are payday loan companies, personal loan products from financial institutions, and disability loans offered by legal outfits that will give you a lump sum payment in advance of your court case.

Many of these services act as lifesavers for those who cannot work or receive very little disability payments on a month to month basis.

Unfortunately for most people on disability, cash is limited, and after the monthly obligations are paid for – mortgage, car, groceries, utilities, and so on – there’s hardly anything left. When you’re not working, it gets harder.

A disability loan can be a life raft for many Canadians. But should you use it? Think about it. Here are five things to know before applying for a disability loan:

1. Can You Afford to Make Payments?

It is one thing to be accepted for a loan, but it is an entirely different story when it comes to knowing if you can afford to repay the loan.

Before you apply for a disability loan, you need to know if you can make the weekly or monthly payments. For a lot of people on disability, they are cash-strapped and their budgets are tight. This is imperative to know beforehand, otherwise you could spiral into debt and never come out of the ordeal.

Crunch the numbers, do your research, and calculate the rates.

2. Determining What the Funds Are For

So, you’re applying for a disability loan. But what do you need the money for?

This is an important part of the process because your priorities may be all wrong.

For instance, getting a loan to pay your rent or to put groceries in the fridge is good. But getting a disability loan to go shopping, play the lottery, or buy cigarettes is bad.

Wasting money isn’t a virtue, whether it’s your own or it’s someone else’s.

3. Never Use Multiple Loans

One way that people get stuck in debt is that they utilize multiple loans from different lenders. They may borrow $500 from a store down the street, $500 from another company, and $500 from a disability loan service. It’s dangerous.

You must refrain from doing this at all possible times. It’s better to use one loan at a time, pay it off, and then, if needed, apply for another one. If you need help, consult with a disability lawyer to assess your possible disability claim options.

4. Shrink Your Spending Habits for a Bit

Since you will be indebted to a business for a little while, it is pertinent to shrink your spending habits for a bit. You will need to slash your spending on frivolous items until the disability loan is repaid. Yes, it can be difficult at first, but restraining yourself could be the best thing for you.

How can you achieve this? Here are a few ideas:

• Quit going out to restaurants or the coffee shop.
• Sinning? Cut back on cigarettes, reduce alcohol consumption, and don’t play the lottery.
• Leave your credit card at home when you go out.
• Ask your telecommunication providers for one month without payment.

These are the little things that add up and put a lot more money in your pocket.

5. Read the Terms & Agreements Before Signing

Before you sign on the line which is dotted, you must carefully read the terms and agreements of the contract. By doing this, you accomplish two things:

• You know what you’re getting yourself into – there aren’t any surprises.
• You can prevent paying for anything extra, costing you more money.

Many people refuse to peruse any contract or document because it’s too long and complicated. Yes, most businesses aren’t out to fleece you, but it’s always better to be safe than sorry.

Being disabled isn’t a picnic. It isn’t only a strain on your body, it’s also a strain on your bank account. Indeed, disability payments – either from the state or your insurance company – are quite minimal, and if you have multiple obligations, like a mortgage, car payments, or debt responsibilities, it can leave you drowning underwater.

This is why so many disabled Canadians turn to disability loans. They need money…and quick.

Before you apply for one, it is important to be equipped with the knowledge to safely and carefully obtain cash from a disability lender.