Have you ever noticed how many credit card offers you start getting when finances get a little tight? It is as if they know every little detail about you, and like vultures, are circling for the feast. That is how it often feels even if it isn’t exactly the case. The reason it feels like that is because, during such times, we get desperate and start reaching for anything that might help us get out of a jam. We start ignoring the fine print because we don’t want to know about the interest rate. We don’t want to know how bad the deal really is.
Inwardly, we know that most of the offers to help us get out of financial trouble are really just going to put us deeper into it. We get so many mixed messages that it is hard to know what and who to believe when the walls start closing in. The people telling you not to get a payday loan tend to be people who have never needed one. That’s really easy advice for them to give. But they don’t really offer you a better path forward. While it might be hard to believe, there are actually some loans that can help instead of hurt. Here are three:
A Leaseback Sale
Sometimes, a sale can be a loan with a leaseback sale. It is a sell home option that allows you to continue living in the home. You have sold the home and are opting to stay in it under a lease arrangement. In the meantime, you get 75% of the sale price upfront to do with as you please while the rest is devoted to the lease option. If times are financially difficult, this option can put a substantial amount of money in your pocket without leaving you destitute. You are free to do a buyback if things change for the better. It can also serve as a smooth transition from an ownership model to a leasing model.
Not all home loans are this advantageous. Some loans will leave you with too little money to get you the relief you need and will make repayment of the loan almost impossible due to confiscatory terms. You will find yourself with no home and insufficient money to get by. So be sure to check the fine print before signing on the dotted line. When the sale is also the loan, you have the tools to substantially improve your situation.
It can be hard to get a good emergency loan, especially emergency loans for single moms with bad credit. Yet that is often the person who is most in need of the loan. They could be in that situation through no fault of their own. But they are the ones who have to dig themselves out of it, not just for their sake, but for the sake of the child who is totally dependent on them.
The key to emergency loans is having the ability to pay them back as quickly as possible. Once the interest starts compounding, so do the problems. This is the type of loan one might have to get when their utilities are being disconnected. You want to get the loan before the disconnection because it is always much more expensive to get it reconnected than it is to stop the disconnection. For bigger loans for things like rent assistance, check with your local housing authority for options. There are always options.
A Debt Consolidation Loan
A debt consolidation loan is specifically designed to take all of your high-interest credit card debt and consolidate them into a single payment per month at a much lower interest rate. That means you will save a lot of money every month while keeping up with your bills and rebuilding rather than destroying your credit. It is the kind of win-win that everyone who carries high-interest debt should consider.
Leaseback sales, emergency loans, and debt consolidation loans are only tools for helping you when life becomes a bit too challenging. Just remember that loans are only temporary solutions that will help you while you put long-term solutions in place.