The financial objectives and aspirations of a single mother are in no way different from a conventional family structure. However, a smaller income would automatically imply that every dollar is important and needs to be used wisely. For a single mom, effective debt management and issues relating to long-term savings could seem to be extremely challenging and overwhelming.
As it is, financial resources are quite tight with both the parents; obviously, things would naturally become even worse with just a single parent. Single parents need to be extra-imaginative to discover ways of managing financial challenges and effectively saving for retirement, higher education, and unexpected emergencies.
Debt Consolidation for Perfect Solutions
Today, due to ever-rising housing costs, augmented childcare expenses, less governmental support, and lower salaries families are under tremendous financial pressure and are experiencing emotional turmoil. The financial crunch seems to intensify for a single mother running the entire show on her own. She is often compelled to take out loans to meet the familyโs financial requirements. More often than not, she is not in a position to pay off the debt. She is perpetually under the burden of debts. The best solution under the circumstances would be to opt for debt consolidation.
Debt consolidation would mean combining multiple debts into a single loan with a lower interest rate and just one manageable monthly repayment. Debt consolidation could be an effective solution for some people but it could be quite difficult to get a debt consolidation loan if you are a single mother. Browse through https://www.nationaldebtreliefprograms.com for more information and professional assistance.
Here are a few common reasons why applications for a debt consolidation loan of single moms are often declined.
The Absence of Any Security for the Loan
Often financial institutions would be looking for some sort of collateral or security while approving loan applications, particularly, if you are a single mother with difficulty in managing all your repayments. The authorities would want some collateral to make sure that they would get back their money no matter what the future has in store.
Poor Credit Score
There are several credit score and credit report issues that could prevent a debt consolidation loan approval for you. Your loan application would be declined if you have a poor credit score because of debts in collections and late debt repayments. If you owe high balances, you are in for more trouble.
Income is Not Sufficient to Be Eligible for the Loan
Generally, the monthly repayment for a debt consolidation loan would be costing more every month as compared to only making the minimum payments on your credit cards. Minimum payments for your credit card are extremely low and it would take decades for you to clear off your credit card balance. Debt consolidation loans, on the other hand, are normally, amortized within 3 to 5 yrs. Therefore, the repayments would have to be high for paying off the loan in just 3 to 5 yrs. If a single momโs income is not adequate for handling such a high payment every month, she may be declined a debt consolidation loan.
Conclusion
Your debt consolidation loan application would be declined if you do not have a sufficient credit history. You must understand your shortcomings and try to avoid them so that you can get a loan approval without a hitch. Single mothers could get a debt consolidation loan if they take note of all the non-eligibility issues and seek professional guidance.
