Being a single mom is not easy. Not only do you need to take care of yourself but of your child as well. Constantly ensuring enough flow of cash is a herculean task, especially amid the cost crisis.

The economic recession is quickly draining your savings. Though you can cut corners to allow for some wiggle room in your budget, this does not seem practicable when your child has the first call on your money.

Thankfully, you can turn to an online lender when you are in a tight spot. With the constant rising cost of living, you might be at the end of your tether, but you cannot just lay your arms down.

You will have to figure out a solution as soon as you start to buckle under the pressure. After all, this is not a question about your life but your child as well. There are various types of emergency loans you can consider applying for.

However, most of the single mothers seek doorstep loans. Even though you need money to tide you over during emergencies, you will certainly try to take advantage of lower interest rates.

Doorstep is a service, not a loan

First off, you need to understand the fact that loan products that you see being offered by online lenders are not different kinds of financial products. Technically, there are only two types of loans – short-term and long-term.

Short-term loans are unsecured loans, also known as personal loans, and long-term loans are secured loans. As far as it is about arranging a guarantor, it depends on the amount you borrow and the lender’s policy, but again it does not form a new category.

In other words, small loans are advertised with features like no guarantor, 100% approval, same day, quick or fast disbursal, doorstep service, etc. if you are looking to apply for a small personal loan, you can opt for a doorstep service.

It does not change the type of loan but the processing way. Instead of getting money in your bank account, a representative of a lender will hand you money at your doorstep. Money will be taken back to your doorstep.

Rest factors like interest rates, payment methods, late payment fees, early repayment charges, and APR will remain the same.

Why was doorstep service started?

The purpose of starting a doorstep service was to provide you with the convenience of borrowing. This service is typically aimed at the retired, the unemployed and the disabled. Although you might have a bank account, it may not be active, or it could be hard for you to operate it smoothly.

For instance, if you are unemployed and have only a pay account. You should have an active account to get money transferred. The disabled and the unemployed could also struggle to manage their account.

Are doorstep loans the ideal choice for single mothers?

Doorstep loans in Ireland may or may not be a suitable choice for you. It is important to note that these loans could be expensive. A lender will have to arrange a meeting with a representative and make arrangements to hand in and collect money at your doorstep.

Therefore, extra fees will be charged. Doorstep loans are generally paid off in a lump sum within a period of two weeks, so it is essential that you must have enough money to clear the dues.

If you fill to do so, late payment fees will be added on, making the debt more expensive. Some people look for instalment payments, but it does not affect them much. The more the number of visits to collect money, the higher the fees you will pay.

It means you will end up paying down double the fees when you choose a weekly instalment repayment plan. Here is how you can know whether these loans are affordable or not:

• Evaluate how much it would cost you

The first thing you need to do is to evaluate how much it would cost you. Use the online loan calculator to get an idea of the interest you will pay down. As these calculators do not involve fees, you will have to assume that the actual cost will be more than the calculator shows.

The next step is to see if you will be able to cover this additional cost from your budget. Make sure that you do not struggle to meet your expenses. If so, doorstep loans are not a good option.

• Your need

Another thing to consider is your need. You should figure out if you actually need money to buy what you want. Is this an essential expense? If you can put it off, you should avoid borrowing money.

You should consider stashing away money for it if you can postpone the purchase. Remember that you are supposed to pay interest on top of the actual cost you want to fund, so it makes it more expensive.

What should you be careful about when applying for these loans?

Doorstep loans could be more expensive when you are applying for them when you have a bad credit rating. A few lenders provide loans in Ireland with no credit check. Beware of these loans, as they will cost you a lot more money.

A credit check is a must to know your past payment behaviors. A lender cannot get to know about your credit score. Approving a loan without a credit check means taking on too much risk, and as a result, a lender will charge too many high-interest rates.

You should avoid applying for these loans. A loan with bad credit could be a bit expensive, yet you will find them more affordable than no credit check loans.

The bottom line

Doorstep loans could be an ideal option for single mothers as long as they can repay them on time. Remember that the doorstep is a service, so that a lender will charge extra fees. Further, you should consider these loans only when you need them for essential expenses.

Avoid using these loans to fund discretionary expenses. No credit check loans could cost you a fortune. Make sure that you do not use these loans despite your bad credit rating. A careful budget is crucial to stay on top of your expenses.

Loans should be able to provide you with additional support, not put a burden on your pocket.