*This is a guest post from financial writer Angela Sanders of A Financial Journal.
Are you a single mother and drowned in a sea of debts? If so, you might be wondering how you got into this state of affairs. Well, instead of wondering what made it happen, it is advisable that you start thinking of ways to get out of such a precarious situation. You could consider debt negotiation in order to settle the debts through a discussion process between you and your creditor. With this, you pay only an agreed proportion of your net debt and the creditor lets off the balance. If you are in debt, it not only affects your own financial status, but also the standard of living that you desire for your kids. So, hard as it may be, it’s important to face your debts in stead of ignoring them.
Following are a few tips to help single mothers in eliminating their debts.
Contact your credit card companies – Call up the credit card companies with high interest rates, and let them know that you are thinking about changing to a card with low rates of interest. If they do not present you a lower interest rate, move your balance to a credit card company with lower rates of interest. Find out the maximum monthly amount that you could pay for your credit card and make the payments without delay. Also, reduce your existing line of credit. This will lessen the risk of your expenditures being more than you could afford to pay in a fixed period of time.
Debt snowball – If you have a reasonable amount of debt, you could consider a debt snowball program to pay off your debts. This is a debt reduction process where you primarily pay the smallest debts while making least payment on bigger debts. After paying off the smallest debts you could seek to pay off the larger ones. This program helps you to eliminate your debts steadily.
Be honest – Try to be sincere about your debts. Since your creditors have a very good memory, it’s of no use looking the other way and avoiding your debts. Study your bills and make a detailed list of the amount you owe to your creditors. Call your creditors and explain your circumstances. Try and negotiate a suitable payment plan. Do this before they call you and start harassing you with their collection activities.
There are also several non-profit organizations that help single mothers in gaining back their financial freedom. They offer several programs to educate single mothers on how to manage their finances and how to breathe within their financial plan. Debts could make life miserable, and when you are a single mom it makes your existence more stressful and complicated. Consider the above tips on debt relief and liberate yourself from the clutches of financial obligation.