Explore Some Simple Steps to Follow for Single Mothers to Effectively Pay off Debts

If you are a single mother, it is quite obvious that you would like to get rid of debts once and for all. Leading the life of a single mom is not easy. Right from child care arrangements to financial planning, daily household chores like cleaning and cooking, and most importantly, raising a kid single handly on your own could prove to be pretty challenging even under the best possible circumstances. Financial experts and debt management gurus offer various tricks and tips that could prove to be helpful for single mothers to thrive in tough situations.
If you are a single mom, and living with consumer debt, then it is nothing new! As per the U.S. Federal Reserve data, an average US household would be having credit card debt amounting to about $15,863 and around $33,090 in terms of student loans. Moreover, as per the recent findings of the Consumer Financial Protection Bureau about 52% of all the existing credit bureau filings seem to be medical debt.
In case you seem to be neck deep in debt, be sure of the fact that nothing is wrong with you and you are not illogical or abnormal. You need to work hard to pay off promptly all your existing debt and start your life afresh. In case, you are living month after month in debt, then whatever you are earning is obviously, no longer yours. You have by this time become a slave to your debt. This should be adversely impacting your relationships, career choices, mental health, and overall well-being. When you live to make loan payments, you would never be able to build some wealth for your family. This could be a pretty distressing, stressful, and tedious way of life.
However, the good news for single moms is that there are some tried and true techniques of getting rid of your debts systematically. Here is a step by step comprehensive guide for single moms to eliminate debts effectively.
money-job-danger-bankrupt
Be Truthful to Yourself
If you are overwhelmed with your credit and debt, it is quite likely that you are ignoring the realities associated with your financial situation. You are not making an endeavor to know the root of the issue instead, you are avoiding the facts. First of all, you need to face the truth without worrying about how ugly it could get. You must gather all monthly statements of your debts, medical bills, credit cards, car note, student loans, home equity line, mortgage, and personal loans from your friends or relatives. Be completely transparent about your financial status at least, to yourself.
Consider Getting a Free Credit Score
You may browse the Internet and visit specific sites for getting your credit score for absolutely free. Moreover, you could examine the accuracy and authenticity of all your debts including credit limits and missed payment notes.
Be Well-Organized
You must consider creating a monthly list containing all your debts including the monthly minimum payments, interest rates, and deadlines. You must chalk out a budget for the month and figure out precisely how much you would be able to pay to systematically get rid of the debt. You may use one of the reputed budgeting tools online. You must be more organized as far as your personal finance is concerned. You must minimize any extra spending and considerably lower your overhead. Keep in mind that overspending or splurging has led you to this mess so be strict. Imagine how life could become nice and happy if you were debt-free.
See If Debt Consolidation Is Viable
Consider debt consolidation or combining multiple debts into a single and usually lower-interest loan. Debt consolidation could be a great option if you have a robust credit score. Debt consolidation could help you in saving thousands of dollars. Get in touch with reputed sites such as nationaldebtreliefprograms.com for effective solutions.
Look for Lower Loan & Credit Card Rates
You would be eligible for certain credit cards with relatively lower rates depending on your financial health and precise credit score. First of all, do a little bit of research and determine if you are qualifying for the zero percent balance transfer. 0% balance transfer could be a fantastic way of paying off your debt, and at the same time, saving substantial money on interest.
This would really work wonders for you provided you are really well-organized. You must carefully read the fine print, and make it a point to pay all the premiums promptly on time. You may either transfer the balance or pay off your balance before the promotion period expires. However, it is all about being honest. You must understand and appreciate that this option could be a good one for you provided you are capable of handling this sort of bookkeeping otherwise; you may not consider this as an option for you.
Try Negotiating a More Favorable Credit Card Rate
An effective way of getting a much better rate on your existing credit card is simply by contacting your present credit card company. You could simply request them for a slightly better rate. Before asking for a better interest rate, you must do your homework. After meticulous research, you would know what rates you could be getting from other credit card companies. You could send the genuine quotes you received from some other companies. Request your existing credit card company to match the quote or offer a better rate.
Determine What Is Best for You: Debt Snowball or Avalanche?
These are two popular and effective ways of paying off debts.
Debt Avalanche: In this method, you start off by paying all your highest interest rates. The greatest benefit of this technique is that you could be saving more money if you tackle and pay off high-interest debt relatively sooner than the rest.
Debt Snowball: In this method, you start by paying off loans or credit card having the lowest balances. The benefit that you enjoy is the emotional and psychological thrill of being able to pay off accounts really fast.
Conclusion: Seek Professional Assistance
If you are neck deep in debt, you are overwhelmed by your ever-mounting debts and if you are of the opinion that it is almost impossible to get rid of the debts on your present income, it is best to seek professional advice and assistance. A qualified and experienced credit counselor would be chalking out an effective debt repayment plan for you. It is crucial to reach out for expert assistance at the earliest. No matter how serious the issue or how depressing the situation, you simply need to reach out for help.

Check Also

electroencephalogram test

How to Pursue a Career as an EEG Technician

An EEG technician is responsible for conducting tests on patients to diagnose abnormalities in their …

Leave a Reply

Your email address will not be published.