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4 Ways Installment Loans Are a Powerful Financial Tool for Single Parents

June 22, 2018 | By Daniel Dewitt

Raising children is hard. Worse, it’s expensive: studies show that the average cost of raising a child is roughly $14,000 a year. Considering most people tend to have around 2-3 children, the average parent is looking at spending around $42,000 a year strictly on child related expenses.

In today’s economy that’s a difficult financial burden for an average, middle class couple to shoulder, but if you’re a single parent with a single income, it’s nearly impossible. Unless you are independently wealthy, as a single parent there are going to be times in your life when you will struggle and scrape to get through difficult financial situations.

One of the most useful tools for getting through those inevitable rough patches we all face from time to time is an installment loan. Installment loans are a fast cash option for those who need access to fast cash and the option of paying it back over time. Here are 4 ways as a single parent you could make them work for you.

Rent

Keeping a roof of your kid’s head can be harder than it sounds when you’re existing on a single income. This is doubly true if you work part-time, freelance, or make most of your money from tips: all three of these employment situations can cause fluctuations to your income from month to month, and rent is still due on the 1st. An installment loan could help you bridge the gap between paychecks or cover a lapse in income.

Medical Expenses

There’s nothing more important than your child’s health, not even money. If you find yourself putting off taking your child to the doctor or dentist because of the cost involved, an installment loan could provide you with fast access to the extra money you need to do the right thing. Preventative care can often save you thousands of dollars down the road, but even that is insignificant compared to the health and safety of the most precious people in your life.

Credit Score Rehabilitation

Considering just how many things your credit score affects (lending rates, interest rates, mortgage, car payments), having a healthy one is a priority in today’s economy. Because installment loans don’t impact your credit score the same way as other types of lending, they can be a great way of rehabilitating your score. While utilizing more than 30% of your available credit card limit will cause your score to drop, you could take out an installment loan to cover the expense without your score dropping.

Clothes

Though it may seem less important than the other items on this list, unless you happen to live in a nudist colony, then buying your kids clothes is a necessity. Nearly all schools have some form of dress code that your child’s clothes will have to meet. This doesn’t mean you have to buy them the newest fashions or trendiest accessories, but there are certain wardrobe essentials that are non-negotiable.