Since the past few years, the divorce rate has increased and due to which the debt level has also increased on the single parents. The survey has indicated that number has doubled up for those who are seeking help for their debt problems. The changes in lifestyle have increased the standard of living and thus costing a fortune to those who have only a single-breadwinner. The families with stagnant wages got a real hit by the economic variation thus forcing the adult to take up any part-time job for supporting the child. As per the records, the number of single parents seeking help for their debt has got up to more than 62,000. It is more than 100 percent as compared to past record. Comparatively, single parents are seeking financial aid for settling their debts which are proportionately equal to 10.5 percent.
Every month, they have piled up bills at their table like rent, tax, gas, and energy. They find it hard to pay them only after doing rigorous cost-cutting in their other expenses. Others might be dealing with the debt of credit cards and medical bills. Here are the things that need to be taken care while paying the debt.
- Start Tallying Up your Bills: If you don’t know how much bills are pending and yet to be paid. It is now very important that you should start tallying up the bills and see for yourself how much you have to pay. You need to sort out your pile up bills like credit card statements, loans, personal loans, medical bills, etc. Adding them all will give you a clear
- Make a budget: It’s a good practice to start making a budget for the monthly Through this, you will be able to see that how much money you still need to pay for debt apart from paying to expense. When you have the budget in hand, you will be clear in spending the money and saving up the sack for your debt payments. Single parents face the challenging time in paying the debt and taking care of monthly expenditure. If you are new to the budget making, you can take help from your friends and family and also can take ideas from online, and you will be able to develop the budget responsibly.
- Determining the method to repay the debt: Firstly, if you are a single parent and you have to take care of your debt problem besides raising a kid, then you need to prepare a list which will be accounted for your debts ranging from low balance to the high balance. So, now you have to come up with the plan to eliminate the debts with a low balance, and you can continue paying a minimum amount of money for your high debt problem. Sooner, you will see the difference in the debt list. You can also try the reverse of it by making the list of debt from the highest balance of debt on top and lowest balance of debt at the bottom. Now, you will have the challenge to pay the highest amount balance of debt first while you will still be paying in the minimum amount for the lowest debt as well. By this, you will carry off the high balance debt first and gradually eliminates the low balance debt. It’s up to you to choose by which method, you will like to decrease your debt.
- Be ready with the backup plan: It’s very important that you have squirrel fund for your emergency days. Squirrel fund can be comprised of the small money that every month you save for the emergency days. You will take out the portion for the fund and rest you kept for the expense. This is a challenge for the single parent to cope with savings and expense, but still, you have to keep on going with it. Whenever you have an emergency, you will not be panicked as you will use your squirrel fund for passing those days.
- Cutting up the credit card stack: it is very important that once you have decided to pay all your debts, you must cut back on the credit card expense. It is useless if you don’t care much about your credit card expenses. Both things can’t go hand in hand. If in one hand you are thinking of cutting the debt slack, then, on the other hand, you required not to spend any more pennies from your credit card.
- Revaluating the debt and expense situation: As a single parent and the sole earner, it must be tough to make all ends meet. It is very important that you start thinking straight and start analyzing your pay with your debt and expense situation. You have to start prioritizing the things that require your attention. The budget won’t be sufficient to deal with both situations You have to think of other ways like you can start living in the area that has either rent controlled apartments or rent is cheaper. If you don’t want to leave the place, you can divide up your rent by getting a roommate. You can talk to your creditors and request them to lower your interest rate. Making changes in your standard of living can also help in monitoring your debt situation and expense.
- Taking extra shifts or second job: To improve your monetary situation, you can either try taking an extra shift at your current job or if you can manage with your time, you can take up another job. You can start a part-time job, or you can go for freelancing jobs. It will be tough to manage, but it will be a big help financially.
Single parent faces a lot of challenges and sometimes due to the financial burden they got themselves tied up with debt. But if they make plans and budget and can stick by it, they will surely improve their situation in a short time.