We all go through a point in our lives where we desperately need money. We, single moms especially, since we have to do a job that is normally done by two. We have to provide for our families alone. We have to put our children’s needs before our own. It even means having to sacrifice our own dreams at times.
When we reach the need or desperation for extra money, there is nothing else that we can do but borrow money. Having to borrow money may not be your ideal solution but drastic times call for drastic measures.
Before you even consider pursuing a loan, make sure that it really is your best option. Remember that companies who loan out money make their living from your financial shortcomings. They naturally make a substantial return on investment thanks to higher interest rates.
Now if you feel that you must really push through with a loan, consider what you need it for. There are many reasons why moms like us get loans. It can be for our own education, medical reasons, to buy a new car, buy a new house or maybe you just need extra cash.
I thought it best if you got a better understanding of the kinds and types of loans for you to determine the best one. Finding the best loan for you can even mean saving thousands of dollars.
1. Debt consolidation loans – this type of loan isn’t for a new car, medical reasons nor educational ones. Instead, this is for those who simply need extra money to pay off a previous debt such as credit card debt.
Now you may be thinking, how will you pay off a debt by adding even more? This is because debt consolidation loans will give you a large amount to pay off your previous debt while you only have to pay a small amount each month to pay off this one.
2. Secured loans – secured loan amounts depend on what you will use as collateral. The loan provider will assess the value of your equity, your home for example and will lend you money up to the assessed value of it.
Remember though that in this type of loan, you are risking your own home if you are not able to conform to the terms and conditions that you have agreed upon. This is only for those who are certain they are able to pay the loan back.
3. Payday loans – you will only be able to avail of this type of loan of you have a regular job. This type of loan will have your paycheck as security.
Every time you receive your paycheck, the loan provider will receive a fixed amount until you have repaid the loan.
4. Federal student loans – if you are thinking of borrowing money to send yourself to school then this is the type of loan that you should consider.
This is a government loan so the interest rates are low and the terms are usually flexible. This type of loan is really for the best interest of a single mom who wishes to attain a degree.