Being a single mother is not an easy feat as it is a full time job without an expiration of contract. While trying to earn enough for the family, we also have to take care of our children and make sure that everything they need are provided. However, there will always be a time when an emergency cash need will pop up and the income is not enough to get over it.
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As a single mother, I have to stick on a budget and make sure that a trickle of my income will go to an emergency fund. Despite making and revising my budget, if an unexpected expense comes up, I know I won’t be able to handle it alone financially. Take for instance a house repair like a leaking plumbing under the sink, an emergency medical bill for my baby, or sudden increase on fares going to work, these will all shake up my well planned budget.
However planned, something will come up and at times no matter how I adjust it, the cash on hand is still not enough.
Whenever my daughter gets sick, I have to temporarily cut my working hours short to take her to the doctor. There are times that I won’t be able to go to work for a few days to nurse my baby back to health.
Hospital and laboratory bills are not cheap, added with my lack of working hours, this will cause a sudden flunk on my income. Cash is vital to cover the medical bills and the daily expenses. It is hard to get by with these financial needs with lack of resources.
I usually budget specific amounts for electricity, phone and water bills. However there are times when companies raise their cost or the new bills exceed my expected consumption. Missing the schedule payment for utility bills is not an option. My daughter can’t last a day without an aircondition, and if my electricity will be cut off, not only will she get irritable, getting back my electricity connection also costs more. Certain sudden increase on expenses is very frustrating and stressful.
If you are also a single mom with the same experience as mine, you should know that you are not alone. There are some loan programs created to assist un in times of need. Here are some things you have to know about loans.
Look at your credit score
Even before shopping for a loan, it is better to first know your credit score standing. The financial institutions will be review your credit rating, and they will decide on your loan approval based on it. There are a lot of types of loans and some lenders base their interest rates on the credit score, because they will be able to assess your ability to service a loan.
It is imperative to take care of your credit score. Some banks and other licensed lenders tend to give lower interest rates to those with high credit scores. Make sure that you take care of you credit rating by paying your loans on time.
Micro Business Loan
If you are a single mom with entrepreneurship skills, you can apply for a small business loan. You can shop around the web to see various business loan offered by lenders. There will be different terms and conditions, so make sure you get the one that best fit you.
Collateral is required by the secured loan. You may use your home, car or other properties as a collateral. If you are going to use this kind of loan, be sure that you are able to repay it, because if you fail, the collateral will be owned by the lender by default.
If you have a couple of loans, you may combine them into consolidation as this will potentially decrease the interest rate. However, do not consolidate a federal loan with a private personal loan in Singapore.
If you still want to go back to school, try to see if your school gives student loans to single moms. A higher education may get you a better job and more internship experience.
This loan gives you support if you want to move out, or buy a new home. Being a single mother does not stop you from owning your own home.
It is easy to find loans online, but be wary on giving your personal information. Many would like to help you out, but many will also try to fish out your financial details and get your hard earned money. You might lose everything instead or gaining some.
Choose a loan that has flexible repayment schemes. There are loans with fixed rates while others are flexible. Also, the longer the period of the loan, the more money you are paying back the lender.
Fine Print and Terms
As said a while ago, know the terms and understand them. Be sure that the fine prints are clear. Some lenders will also try to hide some expenses around, so be vigilant.
Being a single parent is never easy, however there are some ways to get by when you need more financial stability. There are hundreds of money lenders in the web, but choose the one that has a license, eligibility, experience, and flexible terms.
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