The weight of parental and financial responsibilities that rests on the shoulders of single mothers is considerable. Most of the time, these mothers struggle with ways to meet the family’s needs with only one salary and very little support. In fact, it is hard to make a good salary when faced with constraints such as getting to the daycare before 6 p.m. or doing homework with the children after supper, while making sure that all basic needs are met. It is not an easy situation from a financial and personal point of view. This is why we must address the credit issue. It may look like an enticing solution to keep your head above water and maybe buy a few luxuries.
In fact, although credit is an indispensable tool used by lots of people with low income to buy vital goods, avoid potential pitfalls. It is necessary to calculate your budget before applying for credit. Find out more about the loan terms and conditions and avoid making an application with your eyes closed. Applications that are not approved have a negative impact on your credit score.
Ask yourself how much you can pay back per month? It is very important to avoid overindebtedness, which would put you in an undesirable precarious financial situation. Given that the financial situation of single mothers is often precarious, their margin of manoeuvre is limited. This is why they must be informed before going down that road. Banks, financing institutions and companies offering financing plans will not calculate your budget for you. It is much easier to get credit than to reimburse it. Therefore, don’t go into debt unnecessarily; think about the terms of repayment and the interest rate of your loan. Credit is not a present; your creditors will claim their money quickly if you are unable to make your payments. You are the only one who knows what your expenses are and the risk of having to pay for unexpected bills. Whenever possible, play as safe as possible when thinking about credit so as not to find yourself spiralling in debt. Be careful when applying for a loan. Read the small print of the contract to avoid unwanted surprises in terms of fees or conditions. And, the total amount of your payments must not exceed 40% of your annual income. Having said this, as mentioned above, you are the only one who knows how much you can afford. Be smart and careful when applying for credit; people in a financially perilous situation are at risk of finding themselves in serious trouble. You don’t want this to happen to you!