Many among us today live with consumer debt. According to recent Reserve data by the U.S. Federal, there is $15,863 credit card debt in every average U.S. households and about $33,090 USD in student loans. Not to mention, that at least 52% of credit bureau fillings are issued for medical debts. The point is, if you are drowning in debt, you're not alone. That does not mean though, that you still don’t need to work like crazy to pay off all the debts. The problem with debt is that it owes you. You are a slave to your debts until you clear them off. A lot of the times, it affects our mental health, relationships, and the choice of careers we pick. A lot of families never manage to accumulate any wealth, because they’re always in debt. If you want to be relieved of this stressful, exhausting lifestyle, then read on.
There are some things you can do to start picking yourself up. Your time and finance will not be improved overnight, but if you follow these proven methods, then you are guaranteed to get rid of your debts for good.
Honesty is Your Key to Success
When you are under a lot of stress due to your debt and credit, it is probably because you have been neglecting a lot of your financial situation. The first thing you need to do is face reality. Fair warning, it can get really ugly. Collect statements for each one of your debts if you have to. Get statements on your credit cards, student loans, medical bills, personal loans, home equity line, and mortgages and leave nothing behind. For the ones among you who live with a spouse, ask their help and let them know. I know it is easier said than done, but you have to do it. This is where change occurs. This is how you build a foundation for a healthy and prosperous future. Begin with coming clean and being a one hundred percent transparent to yourself and everyone around you. Once you admit how bad the situation is, then the realization and urge to fix it arises.
In case you want to know more about your current credit score, you can always visit nationaldebtreliefprograms.com to get your credit score. You will get a much more accurate check on your debts and notes on any missing credit limits and payments.
Organize Your Expenses Together
The next step is to get all your debts listed. That includes interest rates, any deadlines, monthly minimum payments you may have at the moment. The monthly goal features and budget from can give you a head start. Avail the entire budgeting tool you can find online and start planning. There has never been a more important time to be serious. Once you have done organizing all your expenses and earnings, it is time to cut down on the extra spending. You need to lower your overall cost and keep in mind, that you got in this situation because of the overspending. When things get tiring, keep yourself motivated by imagining a debt-free life. This is the time to keep pushing and moving forward. Don’t worry. It’ll be worth the patience and hard work.
Research for lower credit rates
Try and find the options which allow a lower rate for the credit cards and loans for the time being to manage the present expenses. However, check if you are eligible for zero balance accounts. That will be helpful in such a situation. There are different types of zero balance accounts offered by numerous agencies. Also look for ways in which you can get a card which has lower interest rates. The priority should be lowering your additional expenses such that you do not have to worry about the unnecessary expenses you incur by paying off interests.
Negotiate with the banks to find the best rates and to lower the interest so that you can cope up with the expenses. Try and pay off the credit cards which have the lowest interest. This will help to organize the expenses better and ensure that you can overcome the debt soon enough.
Increase your credit score
There are many things which you can do to simultaneously increase the credit score so that you are you can apply for debt consolidation as well. You can do this by removing any error in the credit score data sheets. Get the red marks off from the credit score sheet which are within your legal limits and consultant experienced debt lawyer regarding ways in which you can remove the other red marks further.
As a single mom, it will be a very difficult task to handle your child and the debt situation together. But in the end, it will be beneficial for you and your family.
Get a professional babysitter to handle your child while you have to do these works. You may have to work for long hours, and that can pose a problem while raising the child. It is essential that you keep your child out of this and this will be possible when you have a babysitter at your service that is professional and trustworthy. Hiring a babysitter can be expensive but it will be an investment that is worth the money spent.
It can be concluded that when you are trying to handle the debt crisis as a single mother thing can be rather difficult. However, to make things easier, you can always follow these tips available with us. An experienced lawyer will be able to help you out. Consider debt consolidation as an alternative to quickly settle the debts, and the other job is a great way to compensate for the money that you are losing out on while paying the debt. The professionals are always there to help you out, and there are numerous debt consolidation policies specifically aimed at women who are single parents. Feel free to try out these options to get the maximum possible solutions.