Social Security Disability benefits are paid to almost 10 million people.
There are times when an individual with a disability needs financial help. Maybe their disability prevents them from working or they have difficulty finding a job because of disability discrimination.
Unfortunately, this causes disabled individuals to endure financial hardship. On average, it takes three months to process social security disability benefits. These are three months worth of unpaid bills and other expenses.
Fortunately, you have options. A popular option is taking out a loan specifically designed for disabled individuals. Here’s everything you need to know about social security disability loans.
Why Social Security Disability Loans Are Important
Any individual appreciates their independence. They want to make their own money to keep a roof over their head and pay for goods and services.
Unfortunately, this is a challenge for disabled individuals. Only 35% of disabled individuals have a job. This could be because of a variety of reasons. But there’s no denying the working lifestyle is arduous if you have a disability.
This becomes even more challenging when you have expenses to pay.
Rent, groceries, and other financial obligations can add up over time. If you don’t receive your social security benefits on time or don’t receive enough benefits, you should have a plan B to keep up with your finances.
While a loan should always be a last resort, they’re there when you have bills due and expenses you need to pay.
A loan doesn’t only need to cover your everyday expenses. You can use the extra money toward services that help make life easier to live.
For example, those with hearing and visual impairments can spend the money on technology that will help them communicate with others.
Those with physical impairments can use the money toward physical therapy and other goods such as products to help them drive.
The Problem With Social Security Payments
Supplemental Security Income, abbreviated as SSI, are monthly payments issued by the government. This provides those with a disability, retired individuals, veterans, and others with funds if they can’t work.
While SSI helps those who can’t work make a living, the system is not perfect. We mentioned the time it takes to get your application approved, which is three months. And that’s if your application is approved.
- Speech disorders
- Musculoskeletal disorders
- Cardiovascular disorders
- Respiratory disorders
- Genitourinary disorders
- Digestive system disorders
- Senses disorders (hearing and vision)
- Mental disorders
- Neurological disorders
- Immune system disorders
- Hematological disorders
In addition, there are other qualifications the government determines. These include:
- The severity of your disorder
- If you are working or have worked (and if you have worked, you can’t do the work you did previously)
- Can’t do other types of work
So what if you do qualify for SSI? This also doesn’t mean you’ll become rich. The recipients receive between $800 and $1,800 per month. The average in 2019 is $1,234.
The amount you receive depends on if you worked previously and your salary when you did work.
Different Types of Social Security Loans
If you’re waiting for your SSI approval or don’t receive enough from SSI, you can apply for a social security loan. There are different types you can apply for. Here are a few examples.
Social Security Disability Loans
SSI offers their own loan program if you’re already approved for SSI and need more money.
You can only receive the monthly amount you’re already approved for. You can only qualify if you’re under extreme hardship, such as having no food and/or shelter with no other support.
Many lenders offer a social security loan program.
These are usually installment loans specifically for SSI recipients. These come with their own loan amounts so you can receive more or less from your SSI payments. You also receive these loans quickly.
You must meet some additional income requirements, depending on the lender.
If you have no luck finding SSI-specific loans, apply for a standard personal loan. The standards are less strict and you can receive a lot more money.
If you can’t receive SSI because you’re employed, you can qualify for a payday loan if you need more cash. These loans cover the amount of a typical paycheck.
Keep in mind, the interest rates on these loans are relatively high and have strict payback periods.
Credit Card Cash Advance
If you have a credit card, you can take a cash advance. This is only an option if you haven’t borrowed up to your credit limit. There may be additional fees but the APR rate isn’t as high as a loan.
If you tried these financing options and have no luck, there are other ways to get extra cash.
Before trying to get a loan, see if you can get a payment extension or develop a payment plan on any expenses due. Explain your situation and state you have a disability. Many companies will be willing to work with you.
If this option doesn’t work, check your local resources. There are other government programs, such as EBT, where you can receive money for groceries.
There are also charities and nonprofits that help disabled individuals gain access to affordable and even free rent and food.
If you can’t take on employment because of your SSI benefits, you can still work in the gig economy.
If you can drive, you can work for a rideshare company or deliver food and groceries. There are many freelance customer service positions available if you have access to a computer and/or phone and want to work from home.
You Always Have Options
If you’re waiting for SSI approval or aren’t receiving enough from SSI, you can always try getting social security disability loans. This way, you always have a backup plan in case you need extra money.
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