For some, being a single mom is chiefly a matter of choice made because of various factors including they do not wish to compromise careers for commitment. Others prefer single parenthood over the unnecessary drama that comes automatically with irresponsible and uncaring dads. However, we know the being a mom is challenging enough but being a single mom is double the hard work and challenge. Many feel that being a single mother seems to be the most difficult job ever. A single mom has a host of responsibilities to take care of and added to all this often they face unemployment. Recent reports reveal that the rate of unemployment among single mothers has actually doubled over the past five years or so. It is quite natural for single moms to face financial issues perpetually and land up in debts.
However, there is no reason to despair as you are simply not the only one who is tackling consumer debt issues. As per the U.S. Federal Reserve data, households in the United States have an average credit card debt of $16,048 and more than $37,000 last year in terms of student loans. As per the statistics provided by the Consumer Financial Protection Bureau, 52% of all the credit bureau filings happen to be for medical debt. The average loan meant for a new vehicle is more than $30,000 and almost 69 months long. Americans owe $196,014 on an average on mortgages according to facts by Experian presented at https://www.forbes.com.
America Is Bugged by Financial Literacy Issues
In general, Americans desire to come up with good financial decisions for attaining success in the future but a wide majority of them never got the chance to learn the precise way of doing it. Statistics reveal that a staggering two-thirds of the total American adult population simply cannot pass a fundamental financial literacy test. Hence, we know that single moms are no different. They are perpetually encountering a financial crisis and predominantly, debt issues.
Single Moms Are Often Tied Down on Account of Their Debts
Overpowering debts impact relationships adversely. Your career choices and health may even get affected negatively because of overwhelming debt issues. Debts and the vicious cycle of debts may prevent many single-parent households from accumulating wealth. This could prove to be really exasperating and stressful. Visit nationaldebtreliefprograms.com to learn more and get perfect debt solutions.
Honesty Always Pays
In case you are overstressing regarding your debt issues, most probably you are avoiding the reality of your financial state. You need to be honest most definitely to yourself. It is time to get real. You need to encounter the hard realities of life and understand the reality of your financial issue, no matter how depressing it is. You must consider collecting statements associated with all your debts including medical bills, credit cards, car note, student loans, home equity line, mortgage, and personal loans from friends or parents. Be 100% honest with yourself. Transparency is the key to success.
Get Your Credit Score Free
Go to online sites and take out your credit score for free. You could examine the accuracy of your debts and that may include credit limits and notes of payments you have missed.
Boost Your Credit Score
If your credit score is pretty low for instance, below 700, then you may not qualify for any new credit card, reduction in interest rate from your present bank, and even a debt consolidation loan. Fortunately, there are effective ways of boosting your overall credit score. You must rectify all errors present on your credit profile. You simply cannot afford to damage your credit score. Sometimes old debts that have already been repaid show up in your credit report by mistake. Often bankruptcies and debts of other people are included by mistake in your credit report. You must take measures to get these grave errors rectified.
Once you get rid of these red marks from your credit report, you could rest assured that you would see a definite boost in your credit score. In case you do not have the luxury of time, you could hire the services of a reliable credit repair firm who would be taking care of all the errors in your credit report.
Create a neat and comprehensive list of all your current debts and do not forget to incorporate minimum monthly payments, interest rates, and even deadlines. You must craft a clever budget for every month and determine the amount you could divert toward repayment of your debt.
Think In Terms Of Debt Consolidation
It is a good idea to tackle multiple debts at once before things get out of your hands. Excessive pending loan payments could make the debt situation pretty overpowering and challenging to repay. So it is best to combine multiple debts into one single but larger loan and get your rate of interest lowered in the process. This is primarily debt consolidation. Private Banks would be offering both debt settlement, as well as, debt consolidation. If you are maintaining a robust credit score, you could end up with a lot of savings.
Decide between a Snowball and an Avalanche
When discussing debt repayment, two main methods come to mind. The debt avalanche involves paying off all debts with very high-interest rates first, so you save on the interest paid over a long term. The other technique is called the debt snowball, where you quickly pay off the smaller low-balance loans or credit cards. This reduces the number of debts you have to pay and relieves you of a lot of stress so you can focus on paying off the more critical ones sooner.
Conclusion: Seek Professional Assistance
If you are a single mom who is simply not able to devote time to debt management on her own, it is best to seek the services of a qualified and experienced credit counselor who would help you by crafting a strategic debt repayment plan that may include the process of debt consolidation. Single moms need to be doubly alert about her debt repayments and other financial issues as they are responsible for the smooth functioning of their households and a happy existence for their children.