Being a single mom in these times and economic climate can indeed be difficult and stressful. The challenges can be many, with the always immediate concern of how to resolve financial problems. Missing due dates on bills means additional costs, and having insufficient funds can cause major headaches. You don't want to be worrying about paying for the basic needs of the children. Therefore, financial stability is vital for a single mom.
And the first step on the road to financial stability is debt management. Today almost everyone has credit card debt. It’s common to have additional debt with mortgages on homes and vehicles. If you’re already deep in debt, there is a way out. The goal is to minimize the interest expense or penalties that you incur before they impede your ability to pay your bills on time. For single parents, this is extremely critical because they will not have anyone else to rely on but themselves.
The first thing to do is list down all your debts and the corresponding monthly payments and ask yourself - do you have enough to pay your debts regularly? If not, then it is time to reduce your monthly payments. You can do this by (a) partial debt payment with savings (if you have savings), (b) consolidating your debts at a lower interest rate, or (c) taking advantage of a debt settlement program.
Which of these is the best option for you? That depends on what your current situation is. When reducing your debt, prioritize those with the higher interest rates. Whatever option you choose, remember that the goal is to reduce the cost of debt or the debt itself. And of course, while you are in debt, make it a point to stop incurring additional debt immediately. Cut off those credit cards. Financial stability is not an impossible task for single moms. It only takes prudence and discipline.
