As a single parent, you face new challenges every day. You do not just have to look after the children, you also have to make sure that there is always enough money to be able to cope well with everyday life. But sometimes the money earned in the job is not enough to make a big investment. Additional money is needed, which usually comes from a loan.
Banks and single parents do not match
Banks are not happy when a single parent wants to take out a loan. Mostly, the borrower’s financial position is cited as a reason that makes lending a single parent difficult to put into action. Because the income is usually just enough to provide the family reasonably. There is no help and no child support. This must not be included in the calculation for the loan, since it is, strictly speaking, social benefits that are not attachable. In addition, many single parents have only one part-time job or are completely dependent on payments from the state, which does not really make borrowing easier. So what to do if a loan is sought for single parents, but the own conditions are not sufficient?
Is the additional load necessary?
Before you even plan to take out a loan, you should ask yourself if this is really necessary. A loan – even a loan for single parents – always represents an additional financial burden. For this reason, it should be carefully considered whether and to what extent a loan is necessary. In addition, the type of loan should be considered.
Consumer goods can be easily and conveniently financed through a consumer loan. Here it does not matter how high the income is or whether one is a single parent or not. Since a consumer loan is earmarked and the purchased goods count as collateral, this is the best alternative for a single parent loan.
However, if the money from the loan is freely available, it gets a bit more complicated. Because then a installment loan must be taken. And this will only be possible if you can meet all the requirements that banks have for lending.
The installment loan as a loan for single parents
In order to be able to take out a loan for a single parent as a installment loan, an income must be available which is above the attachment exemption amount. If the single parent does not have this, he must look for a co-applicant. At best, this is found within the family.
In addition, a very good private credit must exist, so that the creditworthiness can not be diminished by negative entries in the private credit. Here, too, the co-applicant can help in the event of an emergency if the actual borrower experiences problems in this regard.
Finally, the loan amount must fit the personal requirements. As a rule, banks recommend small and manageable loan amounts. This is the only way to avoid over-indebtedness and problems with repayment of a single parent loan are rare.
Where to record?
With good conditions, the loan for single parents can be taken anywhere. It is therefore important to check the many offers for their suitability. This works best with a comparison that can be made conveniently on the Internet. Usually it is the house banks or direct banks that offer the best deals. But even a short-term action at a bank can lead to a good loan offer. If you put a little time into the comparison, you may end up saving a lot of money. Because he will certainly find the offer that best suits the wishes and personal requirements.