Single parents often face financial hardships. When families do not have the benefit of dual incomes, things could get pretty dicey at times, as far as, the financial health of such a family is concerned. A single father would have to keep on juggling work, take care of his kids, and fulfill all the duties and responsibilities towards his children despite financial difficulties and other challenges. When you are the single parent, life could be pretty rough at times and may culminate in huge financial issues like bad credit history. In such a grim scenario what are the loan options left to single fathers? Debt consolidation could work in such a case but you need to explore its viability. Here is a detailed perspective on a typical single parent loan situation.
Understanding Loans That Are Available for Single Fathers
Loans that are offered to single fathers are actually designed to fulfill the financial requirements of parents with a single income. These types of loans are known to offer a broad spectrum of advantages. If you do not have a good credit score and you have been unemployed for a while, lenders would be hesitant to approve your loan request. You may face rejection in such a situation for all sorts of loans including personal loans, home loans, emergency loans, auto loans, or bad credit loans.
However, single fathers are provided with various loan options despite low income or bad credit. Banks would be providing you certain loans but you need to gather basic information and other relevant details and you must consistently keep track of your financial records and credit score. Simultaneously you must consider a loan budget that would be helping you in making monthly repayments promptly and within stipulated deadlines. Visit nationaldebtrelief.com for more information and perfect debt solutions for you.
Debt Consolidation Using a Personal Loan Could Prove To Be Effective For Some Fathers
Financial experts feel that single fathers are usually burdened under heavy debts as they are the sole breadwinners of their families. Single fathers need to take care of their children when they are ill. They need to attend school meetings and devote a lot of time and attention to their kids’ education and other family issues. Often they lose their jobs and they are not able to take up extra jobs to get some additional income for the family. Single dads do not have the luxury of time. They are absolutely hard-pressed for time. Divorcee fathers have more financial difficulties after paying alimony to their ex-wives.
Debt consolidation could prove to be fruitful for many dads who are juggling a variety if expensive debts like credit card and store card borrowing. You could be able to get substantial savings by consolidating such expensive debts into one single cheaper personal loan. Here, the monthly repayments would remain the same and the debt would be eliminated when the term ends. This may not be a perfect solution for many but it works wonders for some dads.
However, debt consolidation using a personal loan may have certain pros and cons. Dads need to pay up the monthly repayment every month dot on time. The loan seems to be just right for people who are just not capable of resisting the temptation of overspending and pushing their credit card limits. This would prove to be a sensible product for repaying their debt within a fixed term.
Does Debt Consolidation with Home Equity Loan Work?
Dads who are not able to get any unsecured personal loan could be thinking of consolidating their debts using home equity loans. But this option is known to have serious drawbacks, as far as, single parents are concerned. Since your home would be serving as the collateral, if you are defaulting or faltering on the payments, you could be losing your home. That could be a major emotional blow to your kids. It is better for single parents to steer clear of a debt consolidation plan using home equity. You may, however, take a decision after consulting a qualified credit counselor.
A single dad may choose a debt consolidation option as per his requirements and preferences but he should make it a point to consult with a qualified nonprofit credit counselor. A professional credit counselor would be helping you with an effective debt management plan. She would also help you in chalking out a family budget that is right for a single income. She would further advise you to modify your lifestyle to stay away from debts in future.