Gambling is a big issue all over the world, but especially in Australia. A shocking one-third of Australians are in debt because of gambling, and that’s a lot.
So, most gamblers, if not all, find themselves resorting to borrowing very often, but what kind of options are right for gamblers? Continue reading to find out.
Types of Loans for Gamblers
Here are the best options for borrowers that want a way out of a gambling debt.
1. Guarantor Loans
A guarantor urgent loan is the type in which you involve a person, typically a friend or family member, to pay off the entire loan in case you fail to do so. This type of loan is ideal for borrowers with bad credit, low incomes, or gambling problems.
Pros of Guarantor Loans:
Low Interest Rates
If you’re a gambler, few lenders could trust that you’d be able to handle the loan no credit check on your own. By including a financially capable person, you’re giving lenders a reason to have more confidence in you to repay Australia loans.
More security for the lender means the ability to borrow more money for you. So, since the lender feels that they’ll get their money back, they can give you more room in terms of how much you can borrow, which will help you pay your gambling debt faster.
Fresh New Start
A lot of gamblers have bad credit, which will affect their financial future more than they even know. The way to improve your credit score is to pay what you owe. So, if the guarantor loan is paid on time, your credit score will become higher, and you’ll get a fresh new start financially.
Cons of Guarantor Loans:
Could Damage a Relationship
Involving a friend or family member in your loan makes you feel safe. That being said, if things go wrong, these relationships could sour very quickly. So, make sure that you’ll be able to repay your guarantor at the terms and conditions that you agree upon.
2. Secured Loans
Secured loans are those where you sign over personal property, vehicle, or other kinds of assets as collateral to the lender. This kind of loan is common among borrowers with bad credit or low income and gamblers.
Pros of Secured Loans:
Low Interest Rates
Since the lenders have secured themselves with the asset that you’ve put up, they no longer feel that they have to charge you a lot. That’s why the interest rates of secured loans are lower. Low interest is a good thing for a gambler because there’s less money to worry about.
Again, signing an asset to the lender makes them be more trusting that they’ll get their money back, so they’re more likely not to restrict you too much in terms of how much you borrow.
Cons of Secured Loans:
Could Lose the Collateral
As with any centerlink bond loan, if you don’t repay on time, you’ll pay extra costs. However, in the case of secured hardship loans for unemployed, gamblers will find themselves losing their home, car, or whatever they used as collateral for the loan to happen.
Gambling is a serious problem that has the ability to turn your life upside down and drown you in debt. Therefore, it’s perfectly okay to seek help.
If you are really in need of quick cash for personal expenses, make an online application with My Cash Online today.