There are over 11 million single-parent families in the United States. 80% of those families are headed by women.
While single parents can provide a good life for their kids, there’s no denying that a single mom without a support system is going to have less money than married couples that have two incomes. Consequently, we find that many moms without a partner run into financial hardships.
If you’re a single parent that needs financial help, you’re in the right place. Loans for single moms are available and in this post, we will help you weigh your money-borrowing options.
Before You Start Looking for Loans, Consider Other Means of Assistance
Loans are great in that they serve the purpose of getting you past today’s hardships. Loans can also be destructive though. Predatory interest rates, skyrocketing fees, and fine print have all sent millions of Americans into crippling debt and eventual bankruptcy.
To lessen your financial burden and risk of running into deeper money issues, look into programs like Medicaid and Section 8 to mitigate your healthcare and housing expenses. You can also ask social workers for resources that might help to offset childcare expenses and even the cost of a vehicle.
Loans for Single Moms
If you’ve determined that pursuing a loan is your best financial option, it’s important to be aware of the different types of loans that are available. Below, we step you through a quick list of loan options so you can determine what’s best for your needs.
1. Network-Sourced Loans
One of the few loans you can get that doesn’t carry interest and fees is a loan from family and friends. If you’re lucky enough to have people in your life that love you, let them know that you need financial help.
You might be surprised by how willing your connections are to usher you through difficult periods in your life. Just do your best to not borrow money that you can’t pay back since money disputes can have a horrendous effect on relationships.
2. Unsecured Loans
When borrowing from the people around you isn’t an option, your next best bet is to go to a lender and look for an unsecured loan. Unsecured loans are loans that banks, credit unions and other lending entities give out to borrowers without requesting collateral in return.
In order to get an unsecured loan, having good credit is a necessity. If you have bad or even average credit, this loan may not be a viable option.
Unsecured loans can double as consolidation loans so if you’re looking for a lender to buy your existing debt so you can simplify the number of entities that you’re paying, unsecured loans are worth pursuing.
3. Secured Loans
Secured loans are loans that require collateral. For example, if you had a car that was worth $3000.00 and needed a $2000.00 loan, you could take your car into a secured loans lender and they’d give you the money that you needed with the caveat that if you don’t pay them back, they can take your vehicle.
Not all secured loans need to be backed by cars. You could go into a pawn shop and secure a loan with a necklace, a game console or several other pieces of property.
4. Payday Loans
Payday loans get a bad rap because they are ground zero for aggressive interest rates and fees. Despite that reputation, if you’re in a pinch, have bad credit and need money now, payday loans can help.
With a payday loan, you’ll be required to show lenders that you have a job and a checking account. After that’s sorted, you’ll be able to borrow amounts of money that either match or exceed what you’re planning on receiving on your next paycheck.
5. Business Loans
If you’re an aspiring entrepreneur your loans for single moms options extend to business loans. Business loans can be acquired from a number of lenders and some won’t even ask you for a business plan to approve your loan (although having a plan is a good idea).
Websites like KIVA provide free business loans to underserved communities so consider checking out what they might offer you before taking on an interest accruing loan.
6. Crowdsourced Loans
Websites like Upstart, Funding Circle and Lending Club offer people personal loans that are sourced from multiple parties. These loans are called “crowdsourced loans”.
While crowdsourced loans are a borrowing option, the people that fund these loans are investors and as such, will charge you interest on borrowed money. Crowdsourced loan providers also have strict credit and income requirements so if you’re hurting in both of those areas, you’ll almost certainly be turned down.
If you have substantial income, some crowdsourcing lenders may overlook credit issues.
Loans for Single Moms Can Help You Beat Adversity and Start on a Brighter Path
Being a single mom is hard. Being a single mom that’s having financial trouble is even harder.
Loans for single moms are a solution to immediate financial problems that can help people like you take steps out of today’s turmoil and hopefully move towards a brighter tomorrow.
Remember, before your turn to loans, look into government options that may be able to help. Loans are great but free assistance is a lot better.
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