Why Senator Jim Bunning affects your unemployment loan.
Thanks a lot Senator.
Just who is Senator Jim Bunning and how could this lone senator affect loans for unemployed people? He’s the guy that blocked a bill in congress that would have extended unemployment benefits for hundreds of thousands of people. Well, today, he did it again.
The impact of this lone senator is getting quite significant, even after one week. Transportation projects that were included in the bill have been halted, resulting in the furlough of hundreds of thousands of jobs. People that were scheduled to lose benefits this week will now have to wait anywhere from a couple weeks to a couple months to resume benefits.
Congress hopes to have a resolution by the end of the week, but with senators like Jim Bunning, he probably won’t make it easy for people on unemployment. I am really at a loss as to what makes this guy think he can just toy with the lives of millions of people. I mean, really?
Of course, with potentially millions of people seeking additional financial help, this could have an impact on loans for the unemployed. It is certainly concievable that people could be turning to unemployment loans. And with more individuals seeking loans, the results could be interesting.
On one hand, you might see lending institutions be a little more picky as to just who they lend to. With the flood of people running to banks or credit unioins, they definately have more variety.
The amount of unsecured loans would be more of a concern than secured loans of course. Unsecured loans equal to no guarantee to the lender, so the risk is higher. And what happens if a lot of people default on those loans? Usually, the lending instution is forced to recoup the moneys in other ways. Like raising interest rates or instituting other fees. Another side effect to this would be what’s called ‘credit crunch’.
Credit crunch is when a large number of non-performing loans cause the lender to offer less credit. Basically, they are less willing to give out loans, due to a fear that the loans will not perform well.
I certainly hope that someone is able to talk some sense into Senator Jim Bunning. Otherwise we may see an impact on loans for the unemployed.
Related posts:
Leave a Reply