Managing finances is a task for everyone as not everyone is well versed with maintaining a balance between earnings,savings, and spending. Be it a corporate or a household finance one needs to do financial planning in order to avoid a monitory crisis in the future.As a couple, people manage to do fair financial planning both before and after the kid. But this balance is lost when either of them is not contributing in the monthly expenses. Mostly this problem is faced when there is a divorce. Usually, the husband is working and earning more in the majority of the cases which is the reason why after single separation mothers have to go through a lot of financial crisis. After divorcing the mothers not just need to manage everything but also the dependent child’s expenses single-handedly and it becomes very difficult even to save a little in such situations. To manage these temporary expenses, they have to take help of money lending services to save their finances from getting worst.
Importance of money lending for single mothers
Solves short-term financial crisis:
Money lending provides short-term loans to individuals at a favorable interest rate. This gives temporary relief to the single mothers from their financial crisis and helps to manage finance related task smoothly. This short-term loan helps them to focus on other important expenses and needs apart from spending. It gives not only monitory but also a mental relief to single mothers.
Guides in overall development:
The instant cash helps singles mothers to maintain a balance between everything and concentrate more on the personal and professional life apart from financial matters. This maintains a balanced lifestyle and helps in the overall development of both the mother and the child.
Saves from bankruptcy:
Single mothers are most prone to bankruptcy especially in the initial months after separation.Not only the income but the assets are also divided between both which is why many a time’ssingle moms have to strive hard to fulfill even the basic needs such as shelter and education of the child. During this period money lending proves to be of great use as it provides instant cash flow and helps single mothers to fix things which were not possible for them in terms of money matters.
Women empowerment:
In some cases, it is seen that the before divorce the man is an office worker and women is a homemaker but after separation, the mother needs to start earning too.Money lending is a good option for single mothers to start any small-scale business in order to become financially independent. It empowers women to recognize self-worth by providing them temporary financial help whenever needed.
Savings are left almost unaffected:
Savings is very important as a mother as there are many things to look after and savings becomes mandatory.In the case of divorce, the income is almost half wherein the scope for savings completely disappears during the post-divorce financial phase. Money lending gives instant financial support due to which the savings remain almost unaffected. Yes, the lender money is to be returned, but it is in easy installments which can be managed smoothly.
Sources of money lending for single mothers
Individual lenders:
There are individual money lenders who lend moneyto the needful in exchange for high interests. These are licensed money lenders and it’s all business for them. The type of loan offered or the whole execution of the money lending process may differ from country to country. There are also countries which do not have any such concept of money lenders.
Private lending companies:
Banks and financial institutions cannot be considered as money lenders ideally. There are private individuals,group of individuals or private organizations who provide money lending facility to people. This money is usually given for a short period of time at a higher rate of interest. Usually, not much documentation is needed for it.
Online websites:
Yes, just like any other business the money lending business is also established online, and today there are several websites which provide money lending services online to individuals. Taking money lending service online is a good option but be very particular before you take up these services; always go through the review and ratings of the website before taking their services. https://www.libertylending.com is one of the leading providers of such services.
Traditional sources:
Earlier when there were no banks or any financial institutions, people borrowed money from friends’ family or relatives. In case of an emergency single mother can borrow money from their friends or family members and return whenever possible. The benefit of borrowing money from a family member is that there is no interest, no due date,no late payment charges, etc. Also, the trust factor plays an important role in the traditional form of money lending.
Even though money lending provides instant financial support, there are a few things to keep in mind before you borrow money from anywhere.Firstly, analyze your needs and requirements and calculate as to how much money you are actually falling short of. In case of emergency only borrow an amount which you actually require an excess amount borrowed will lead to unnecessary expenses too.Also, while applying for loan read all the payment terms and conditions properly.See to it that the rate of interest is not too high.
Wrapping up
The borrowed money will give you financial support but remember that is finally a debt and you need to pay it back so make wise use of it. As far as possible during financial crises try to make the most from your savings and just cut down those unnecessary expenses. Do a proper future financial planning and search for alternative and extra sources of passive income.With passive income, you will be able to save more, and your part of income which goes into debt payment will not affect much on your finances. Always have emergency funds apart from your regular expenses.
