Single-parent men and women are often confronted with special financial requirements in their everyday lives. Often the employment of a single parent is considerably limited by the child care or not at all possible. Accordingly, single parents are often faced with the difficulty of only living on a single income or even unemployment benefit II.

What to look for?

What to look for?

While the Internet offers a variety of loan providers who often advertise special terms and conditions, they also carry high risks. Often online agreed loan installments are no longer sustainable for single parents after a short time, so that debt spirals become an unpleasant consequence. Likewise, borrowers are often overpriced and so pay back an immense sum, without having used the money at all.

Accordingly, it is of great importance in the run-up to a loan to examine the loan agreement extensively and also to deal with the unpleasant fine print.

Certainly, however, the interest rate is crucial for taking out a loan. It is particularly important when it comes to the processing period and thus the rates of a loan. For loans, mortgage rates should be as low as possible.

Lending rates are a fixed percentage that is credited to the loan and must be paid in addition by borrowers over the settlement period. The interest charged on a loan may be considered as the remuneration of the bank issuing the loan. Banks also deduct this amount because they want to be insured for the risk of default.

When granting loans, however, different forms of interest are taken into account. These include, for example, credit-related interest rates that have no fixed value, as they are calculated on a customer-specific basis.

Likewise, the so-called nominal interest rate and the effective interest rate are calculated for a loan. The nominal interest rate describes the amount paid by the borrower to the institute for the loan itself. This is always based on current developments in the market economy and corresponding supply and demand.

By contrast, the effective interest rate, often described as the APR, is the cost of loans. It is calculated by various factors, such as the nominal interest rate and the repayment of the loan.

Loans for single parents interesting due to low interest rates

Loans for single parents interesting due to low interest rates

Compared to the past few years, taking a survey seems to be particularly interesting at present, as the German financial market is currently in a so-called low-interest phase. Rarely before could borrowers enjoy such low interest rates.

In addition, forecasts indicate that lending rates will continue to decline.

Likewise, when taking out loans, the fact must be taken into account that not all loans earn interest to the same extent. For example, loans in the field of construction or real estate financing are cheaper than other loans. Fundamentally, this is due to the fact that a large number of customers who want to take out building loans or home loans already bring in equity and so co- finance a portion of the loan from the outset.

Likewise, with such loans for the banks additional security, since the real estate object serves as additional security.

No matter which loan form a customer wants to use, it is important to carry out a detailed examination of possible interest rates in advance. Although interest rates on loans are currently at a record low, it is still advisable not to blindly engage a single bank.

In order to make use of a suitable offer, a loan interest rate comparison should therefore be carried out. Often such a comparison is possible online. In addition, important conditions should be clarified early. These include, for example, the possibility of special repayment and, accordingly, the adjustment of the repayment rate.

Not every institute provides this opportunity for its customers. And customer service should also be a top priority in this context. For borrowers, it is extremely important to have a local contact who is always available for the needs of his client.