If a person ever wants to meet an example of strength and courage, they need to look no further than a single mother. They are faced more than trying to raise children alone, as they often have to confront the world with only a single paycheck. This often requires reducing everything down to a budget and looking at buying and spending through the lens of what is affordable and what is not. Single parent households are often only minimally afloat, and just about any crisis can result in profound financial trouble. This is even more pronounced in recessionary times as it is in periods of strong economic growth. Still, for a single mother facing financial trouble, there are places to turn to. Many lenders are willing to consider loans for single moms.
Still, while it can be nearly impossible to turn down money, sometimes, not every loan offer should ever be excepted. There are predatory lenders out there, and many of them are out to simple make money hand-over-fist, not help a woman in need. As such, a single mother needs to look at the fine print of each loan they are considering. They need to look at the duration of the loan and how the interest is calculated.
Typically, if the loan like a 30 day loan features a variable rate, they may want to reconsider. These types of loans are extremely similar to the troublesome subprime mortgages that has financially sunk so many other American families. Variable rate loans can change at a moment’s notice, and the interest rate never goes down. On some loans, the cost of the monthly minimum has doubled or tripled out of a family’s budget. Depending on the contractual terms, failure to pay at the new monthly minimum could lead to forfeiture of the collateral borrowed against, which is quite often either a home or a car.
Single moms need to know what they are getting into before the sign the dotted line. Some financial can seem catastrophic; however, a badly termed loan can just make those problems much, much worse.
Related articles
- Breaking Down the Elements of Student Loan Consolidation (debt-consolidation-2u.com)
- Business start up loans – Easy To Get (debt-consolidation-2u.com)