Being a single mom isn’t easy. In fact, it’s one of the toughest things in the world, especially if your child’s father doesn’t pay child support or help in any way. If you are truly operating as a single mom, then you undoubtedly know the struggle all too well.
It’s important for you to know, however, that you are definitely not alone. There are actually quite a few resources out there that can help you financially and enable you to provide for yourself and the little person (or people) you love more than anything else.
Here, we’ll cover 5 of the top resources you should be taking advantage of and how they can help you because, let’s face it single moms need all the help they can get these days!
Option #1: Car Title Loans
Car title loans are shortterm loans that can really help you out if you find yourself in a jam. Typically, these loans don’t pay much, if any, attention to your credit, so they’re definitely a good choice if you have less than perfect credit, and honestly, many single mothers have had their share of credit struggles in the past.
In order to get this loan, you supply the lender with your vehicle’s title and, in some cases, depending on the lender, pay a small fee to get the loan started.
Most of these loans last for only a month, but different lenders have their own terms. Once you have paid back the lender and the loan terms have been satisfied, you are given back the title to your car. If you do not pay the loan, however, the lender will have possession of your vehicle, so it’s definitely important to pay the loan off as agreed.
One of the really nice things about these loans, though, is that in most cases, you will still be able to retain your car, drive it, and use it, going about your daily life as if nothing has changed. And, as long as you make your payments as agreed, nothing will change. You could even use your car title again in the future to secure another loan, but hopefully, one will be all that you need!
Do bear in mind, however, that some lenders will require you to take out roadside assistance for the vehicle you are using as collateral. That’s to protect the lender in the event that the car gets stuck somewhere or an accident happens, but it can also help to protect you as well since there’s nothing worse, especially for a single mom, than being stranded and without access to help.
What You’ll Need
If you think that a car title loan sounds like a viable option for your needs, then your next step will be to find a reputable lender. Typically, your lender will ask to see the following items, or, if you’re getting the loan online, photocopies of the following items:
● l A fully filledout loan application
● l Your car/ a photo of your car
● l The car’s title (must be mailed in for online loans)
● l A photo ID
Once your loan is approved, you can usually have your money quite quickly. Your lender will typically not even ask questions about what the loan is to be used for, and you are under no obligation to make this information known, so spend the money on anything you need; just make sure that you borrow well within your means and that you meet all of the repayment terms that you agreed to.
Option #2: Registration Loans
For single moms who’ve found themselves in a tough financial spot, another good option is to take out a registration loan. Registration loans are loans given with your vehicle registration as the collateral. This is a good option that is backed by all the equity you’ve put into your vehicle, and, unlike with a title loan, you are not required to have fully paid off your car in order to be eligible.
If you are approved for a registration loan, your lender will retain the car’s registration until all of the loan terms have been satisfied. The good news is that once you are approved and your registration has been received, you can typically have your loan in a matter of hours.
Also, as is true with title loans, you will be able to retain use of your vehicle while the registration loan is being paid. This is a very important feature for families that only have one vehicle and rely on that vehicle for getting to work and just generally getting around. If you come across a lender who will not allow you to use your vehicle throughout the loan process, you’ll probably want to keep looking as most reputable lenders let you keep and use your car as long as you are making your payments as agreed.
Credit Doesn’t Count
Just like with car title loans, your credit will not be closely scrutinized, if it’s even looked at all, to determine your eligibility for the loan. The car registration in your name provides enough collateral for you to secure the loan and have your money quickly.
Do bear in mind, however, that if you do not currently own the car outright, you may have to get permission from the original lender before you can take out a registration loans. Even if you do not have to get permission, it’s still a good idea to let your original lender know what’s going on to avoid any confusion and any ugly surprises!
Option #3: Personal Loans
If you are a single mom in need of a loan but don’t want to risk your vehicle in any way, then you may want to consider a simple installment loan. These are very flexible and less risky than the other two options. In fact, they’re probably the most highly recommended type of loan of any of the loans on our list, though all are good options.
With your lender, you will simply work out how much you need to borrow and the amount of time in which you could reasonably repay the loan. It is important to be realistic and honest with yourself and your lender when you work out the details of your loan and when and how you will pay it back. If you’re not, you’re likely to end up being late on payments, which can have consequences, such as fees and fines.
Once you and your lender have determined a repayment schedule and timeline, you can then get your money and use it to help you and your children get into a better financial position.
Obviously, an installment loan is a wonderful way to get the money that you and your children need to stay afloat. However, if you do happen to run into trouble as you are repaying the loan, keeping the lines of communication open with your lender is the most important thing.
If you can’t make a payment due to sudden unexpected expenses, such as your child getting sick and having to go to the doctor, let your lender know what’s going on immediately and see what you can work out. If you ignore your lender, you are just going to make the situation worse, but if you communicate, most lenders will be willing to accommodate your needs up to a point. This also brings us back to the importance of honesty and being realistic. If you’ve been truthful with your lender from the start and he knows your situation, he’ll typically be a lot more willing to work with you if something goes awry than he would if you’ve been evasive and dishonest from the start.