Most mothers caring for young ones are struggling with the increasing cost of living like any other consumer. For a mother who has just had a child, you are lucky if you have your job back because most employers are reluctant to hire you immediately. Most mothers also find it hard getting back their lucrative jobs and end up opting for whichever opening comes along to make ends meet.
If you are a mother trying to get back on your feet, you might find it hard to get the funding you need. Luckily, there are other options to get funding for whichever purpose you have in mind. Here are some personal loans you should consider to improve your financial situation:
- Unsecured Personal Loan
This is the most common type of loan today and it is ideal for salaried mothers who are trying to get their finances back on track. If you have a steady flow of income, there are many online lenders who will provide a tailored loan without any collateral. This loan can be used for emergencies or any other pressing needs you might have. The loan is repaid through fixed or variable monthly installments and the interest rates are generally higher. Your credit history will also determine if the loan will be approved.
- Secured Personal loan
This form of financing requires collateral, which means you will have to provide an asset to get the loan. The asset could be a car or your home and because the risk is lower, secured loans come with lower interest rates. If you have a valuable asset and you are sure you can afford the monthly repayments, you can still find credible online lenders who will process your loan quickly.
- Payday Loans
This is a personal loan that is tied to your ability to repay during the next payday. This is a perfect solution when you have an emergency such as a medical issue. These loans are designed for salaried individuals and mothers can use them to meet cash shortfalls before the next paycheck. Online lenders offer quick approval and there are no credit checks when getting approved. The loan is tailor-made to suit the amount you earn.
- Bad Credit Personal loan
Many household owners are struggling with debt and in most cases, this has affected their credit rating. As a mother, you might find it hard getting a loan from your bank or credit union with a poor credit score. Luckily, there are online loan providers who offer favorable interest rates irrespective of your credit history. These loans are based on your income and they can help you improve your credit rating if you repay promptly.
- Home Equity
Most people don’t consider home equity as personal, yet it perfectly fits the bill. If for instance you want to buy a car and you don’t have the cash, you can use your home as collateral to get the money you want. However, this loan carries a lot of risk because you can lose your precious home if you default.
Of course there are many other loan options targeting mothers including from Christian loans, the government loans, reverse mortgage loans, not-for profit loans among others. When choosing the best loan make sure you understand everything about the product.
Jessica Simpson has been advising mothers on personal finances including personal loans for over 20 years. She is a financial consultant who has worked both with public and private sector. She lives in Washington with family.