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Life as a single parent can be quite challenging, especially when one is getting started. In society, individuals are used to the concept of dividing roles based on gender. Even after marriage, some tasks are considered primarily for men, while others are reserved for ladies. What if the turns of life render you a single parent? Well, you will have no other option other than doing everything single handedly, right from being a breadwinner to taking care of children.
A recent study established that single mothers struggle with debt. While it might appear surprising to some individuals, this is something that should be expected, keeping in mind the tasks that they have a moral obligation to keep. For instance, living paycheck to paycheck may become extremely difficult when they have to give their children the best. Some single moms also struggle to keep up with mortgage payments. Some had had to struggle with settling the joint debt they had as couples before life rendered them single. Are you a single mom? Are you overwhelmed with debt? Do you feel that it is extremely difficult for you to get out of debt? Well, if your answers to these questions are yes, find comfort in knowing that your situation is still manageable. This blog discusses how single moms can get out of debt. Let us see what you can do.
Here are the explanations
Understand why you are in debt
Without understanding the reason why, you are in debt, you cannot successfully get out of this problem. You will be robbing Paul to pay Peter. What really contributed to you incurring so much debt? Was it a divorce, death of a spouse, or simply poor personal finance management? Did you borrow to pay school fees for your kids? Did you take a loan to acquire an asset? These questions will help you put matters into the right perspective. Once you understand the reason why you got into debt, you must resolve not to do the same. For instance, if the main problem is poor financial habits, you must be determined to make relevant changes as far as your finance is concerned. The point is, you can be successful if and only if you avoid the habits that led you into debt. You may have legit reasons why you borrowed, even if you got overwhelmed. Still, you might have made poor decisions that made you borrow more than what you could afford. Whichever the case, the most basic and critical step is to acknowledge what led you into debt and make appropriate changes.
Budgeting is a fundamental principle that applies to all sectors as far as finance is concerned. If you do not have a budget, then this could be one of the reasons why you are in debt. As a single mom, much depends on you and you do not have a budget to direct expenditure, you may never get out of debt. In fact, you may accumulate more and more debt. You want to make your kids happy by giving them the best that you desire or what they want. But if you are not careful, this might be a trap for you. It is vital to draw the line between the basic needs and the luxuries, especially if you are aiming at getting out of debt. It might be a bad feeling to afford that attractive toy that your kid admires. But if it is not affordable for you, don’t go for it. But what do we mean when we say something is not accessible for you? Well, it is not that you don’t have money to buy it, instead, it’s not a priority for now.
Also, we mentioned that much depends on you. This requires that you critically monitor your expenditure. You must know how much you spend on basics such as grocery and transport. The common mistakes that many single moms make is to shop without a precise budget. Many end up spending too much than what they would have loved. Any time you go for grocery, ensure that you have a list of the things that you want. While the store, pick specifically those items, nothing more, nothing less. Leave the store right away. It might sound ridiculous, but this will cushion you against unnecessary spending.
Supplement your income
What do you do for a living? Is it possible that you can do something else? I know how challenging this can be because you already have the responsibility of caring for the kids as you work. However, you may have to sacrifice for a better tomorrow. Looking after children should never be an excuse for not supplementing your regular income. Take them to a day-care or hire someone to look after them to get additional time to do something else. After all, it is for the betterment of the entire family.
Now that you have created additional time, what else can you do to earn more income? There are several options out there. With the advancement in technology, you can write and sell articles online. There are so many freelancing websites that can offer a platform to do that. Alternatively, you can work overtime if that attracts more benefits in your company. Just talk to your manager boss about that and do not be surprised the boss may offer you nice deals. Use the extra income to pay off the debt.
Consider debt consolidation
This is a critical decision that requires financial prudence to be made. In case you have several loans, you may take one single loan from https://www.instantloan.sg use the funds to pay them off at once. You will only be required to make one payment each month. This will give the morale to pay off the debt. Again, remember that financial prudence should guide your decision here. If you can save on interest payment, then do not rush to consolidate.
Seek professional help
There are many financial experts out there who can offer you the best kind of help in case you are overwhelmed with debt. Do not be ashamed of your situation. Many acknowledge the critical economic times we are living in. So do not hesitate to seek help.
The Bottom Line
Getting out of debt can be very challenging for single parents. It can even be worse for single moms. But the good thing is, no human is limited. You can successfully get out of debt if you are a single mom and currently struggling. Follow the tips discussed here, and you will become successful.