Advance America: How an Unsecured Loan Can Get You Back on Your Feet After COVID-19

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Apr 16, 2021, 09:00 ET

LOS ANGELES, April 16, 2021 /PRNewswire/ -- For many people, getting through 2020 involved picking up some debt. Even with COVID-19 numbers finally on the decline, it may not be easy to fix the challenges of the past year. Many people need financial assistance right now, and using unsecured loans the right way can help you financially recover.

Unsecured Loans for Debt Consolidation

One of the most common reasons to apply for an unsecured loan is to consolidate existing debt and lump it all into a single monthly payment. It's also a good way to eliminate the high interest payments that credit card companies charge.

During the 2020 pandemic, a number of companies were forced to cut back on their workforce and send employees home. Unemployment benefits helped cover some of the sting of that, but a lot of folks still fell behind and had to rely on credit cards to survive.

If this sounds like the circumstances you have endured, an unsecured loan can help you get out from under the credit card companies and increase the amount of extra cash you have on hand each month. That's money that can be used to catch up on other bills.

Unsecured Loans to Pay Off Overdue Rent

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

Rental payments are not used in the calculation of your FICO score, so unlike credit card debt, owing back rent should not affect your credit. This puts you in a better position to be 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 problems folks are dealing with right now. Joblessness and economic loss have cause hardships for many families in the United States.

Lenders are willing to approve unsecured loans for people with low to moderate income and less than great credit. If you need the money, go to your local bank or find an online lender. Help is available and you are not alone in what you're going through.

Notice: Information provided in this article is for informational purposes only. Consult your financial advisor about your financial circumstances.

SOURCE Advance America