Tips For Single Mothers To Clear The Debt

clear-debt

Please welcome a guest post by Amy Lewis

Being in debt is off course not a desirable situation, especially for single mothers. It is can be very difficult for them to pay off the debt and manage the financial obligation along with supporting themselves as well as kids single handedly. But fortunately there are some avenues that can help them clear their debt. Like for example, if they follow a few debt relief tips they can wipe off their debt sooner or later.  Here are some simple steps to get started.

 

1.   Follow a few simple tips

2.   Find out the total debt owed

 

You must understand that for getting out of debt you must know the total amount of debt owed. So make a list of all the debts and the corresponding monthly payments. Also make a list of the interest rates of each of the debt. Then equate your debt against your monthly income and see if the former is more than the latter.

 

Manage your debt with the debt snowball

If your debt amount is under control you can consider the option of debt snowball to pay off the debt. Debt snowball method is a debt reduction strategy where you can first pay off the accounts with the smallest balances while making minimum payment on larger debts.  Once the smallest debts are paid off you can attempt to pay off the larger debts. This process will boost your psychology and will help you clear your debt gradually.

 

Lower your monthly payments:

If your monthly payments are more than your monthly income then you must lower the payments. For doing so, follow the ways listed below.

 

  • Take out a consolidation loan at a lower interest rate and consolidate all your high interest debts into the loan. This can lower your monthly payments.

 

  •  Approach your creditor and request him to extend the loan term. If required demonstrate your financial hardships and convince him that you are not being able to pay the large amount of debt. If your creditor agrees, your monthly payments will get lowered.

 

  •  You may also enroll into a debt settlement program. In this program, the creditor forgives a part of your debt, and thus your monthly payments get reduced.

 

Revise your payment plans

Work out with your creditors and request him to make a new payment plan for you. So that it becomes convenient for you to make your monthly payments and to pay off the debt at ease.

 

You may work with your creditor and request him all by yourself or may hire the services of a counsellor who will approach the creditor on your behalf so that you do not have to personally get involved into this phenomenon.

 

Take assistance from government and non-profit organization

Seek help from a non-profit organization. They provide help to low income or unemployed single mothers to come out of debt and get back to their own feet. Women’s independence scholarship program is one such program that helps women to clear their debt by giving them education on how to manage finances and how to live within budget. You may also seek help from a government organization. There are many states who offer basic living expenses to single mothers.

 

Debt can make the life of a single mother little complicated but there is nothing to be worried about it. Bear in mind the above mentioned debt relief tips and wipe off the debt and other financial obligation as soon as possible.

 

About the Author: This article has been written by Amy Lewis.

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Category: Debt Freedom

  • Thanks for sharing Amy, down to earth tips for single mothers to get out of the debt game.

  • Jesihappy

    great blog thnks for sharing. http://www.franklindebtrelief.com/debt-consolidation-resources.html