Many families are struggling today to get by. The rising costs of goods and services have made many people have to work more just to keep up. As more people struggle and still need things to make ends meet, there are families looking for loans to help make purchases. This is especially true for those looking to make large purchases, such as for a house or car. The good news is that there are hardship loans for struggling families.
It is important to know the difference in a grant and a loan. As people look for financial assistance they may come across both options. It is important to know the difference from the start, so you can be aware of the expectations attached to each one. A grant is a sum of money or financial support that someone receives that they do not ever have to pay back. It is considered to be a free gift to help people in need.
On the other hand, a loan is a sum of money or financial support that will need to be paid back. When families take out loans they are typically expected to agree to the pay back terms, which will include a set amount that will be paid back each year, for a certain period of time. Receiving a loan is a legal binding contract and you will be held to paying it back, or you will receive poor credit, and may lose whatever it is you are paying on if you stop paying (i.e., a car).
How to Get Hardship Loans
Once someone knows they need a hardship loan, the first thing they should do is start looking for a place to get it from. There are many lenders in the country and they each have standards regarding who they will provide loans to. Some may require that you meet certain income requirements, while others may be more lenient about who gets a loan.
To find places that will provide hardship loans for struggling families, start by contacting your local churches and non-profit organizations. They may be able to provide your family with a small loan or other financial assistance, or provide you with a referral to another place in your area that can give you a loan.
Other places in your community you can contact include local banks and credit unions. Some of them may be able to provide loans to those who have a low income or are experiencing a hardship. They may also have good referrals of other places that can help you.
Another popular option for families struggling financially is to turn to getting a payday loan or loan from a pawn shop. They can be found in cities around the country and are used by people frequently to get hardship loans. They will typically give you a payday loan based on the proof that you have a job and will be able to pay it back. Pawn shops will typically allow you to take in something of value and get a loan for it while they hold it. When you pay the loan back with interest, you will get your item of value back. If you fail to pay the loan back then you will usually lose your personal item. They will end up selling your personal item to recover their loan money back.
Pawn shops and payday loan places are an attractive solution for many families who experience hardship, because people can walk into the place and within minutes walk out with cash in their hand. However, it is important to go into it knowing that they usually have higher interest rates than most other types of lenders. Still, they can be a helpful resource for those who need it to get by during certain weeks of hardship.
Obtaining the Loan and Beyond
No matter what place you obtain a loan from they are going to require that you sign paperwork agreeing to the payback terms. Be sure to read the fine print and know exactly what you are agreeing to. Review the amount listed that needs to be paid back, what the payment terms are, and what happens if you default on the loan.
Once you have taken out the loan be sure to follow through with paying it back as you agreed to. If you do, then you will likely earn some good credit if it is through a lending institution that reports to the credit bureaus. If you do not follow through with your loan terms then you could be subject to getting poor credit and you may make it to where you cannot get more loans.
If you feel you are struggling to make a payment there are things you can do. Contact the company you have the loan through, regardless of what type of lender you have the loan through. Let them know you are having a difficult time making the payment and need to know what you can do. They may have options or be able to provide you with what is called a grace period.
The important thing is to keep in contact with the lender if you are struggling to make payments. That’s the best way to help protect your credit and assets. They may be willing to work with you if they know you are struggling. This gives you more time to keep the loan in good standing.
Getting loans is to help pay for unexpected bills and other issues is within reach for families who are struggling. You just need to locate them, only take out the amount you need, know the terms going into it, and be sure to pay it back as you have agreed to. Once you do that you will have an easier time getting more loans going forward. The hardship loans may make the difference in being able to make ends meet one week and not or being able to have certain items, such as a car.
