Image by Getty Images via @daylifeThey haven’t been around long, but pension loans have already started to become very popular in the United States, Canada, Australia, Germany, Italy, the United Kingdom and many other countries. If you have a pension and need quick access to funds, you should consider getting a pension loan. So what exactly is a pension loan?
What Is a Pension Loan?
In actuality, this option isn’t a loan at all. It’s more like a pension advance. There are financial institutions that extend money to pensioners in exchange for a chunk of the future pension payments they are expecting to receive. So, the “borrowers” get a lump sum of money to do whatever they want or need to do. It could be $10,000, $20,000 or $50,00. It all depends on how much their future pension payments are expected to be and how much cash they want to access right now.
The pension lump sum could be used for virtually anything, including the following:
- Avoiding bankruptcy
- College tuition
- Debt consolidation
- Dream vacation
- Fantasy automobile
- Major home renovations
- Medical bills
- New business venture
- Saving a home from repossession
Why Choose a Pension Loan?
An individual might choose to get a pension advance instead of applying for a traditional loan or using a credit card for a number of reasons. First of all, the amount of cash the pensioner can access is much larger. In many cases, a retiree with a $100,000 pension can access as much as $75,000 in cash, even with less than perfect credit. The pension itself acts as collateral, although most financial institutions will only advance money to pensioners that have an alternative source of income for the time period in which they won’t be receiving payments. The process is fast and hassle-free, too, often taking only six weeks or less. And unlike bank loans, which typically require a lengthy explanation of where the money will be spent, the choice is in the hands of the pensioner.
If you are in need of a large sum of funds quickly, and have a pension, a pension loan could be just the solution you are seeking. Be sure to do your research, since you’ll want to be confident you’re going with one of the best pension loan companies online today, and get started moving toward your dream of paying off those bills, going back to college or taking that once-in-a-lifetime vacation.
Jessica writes about a wide variety of topics. She especially enjoys writing about loans. You can learn more about pension loans at www.uspensionfunding.com
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