Three Useful Ways to Manage Single Parent Debt

Are you a single mother/father? And do you want to get over all your debt? If yes, then you are not the only one. The U.S. Federal Reserve data reveals that most U.S household incurs credit card debt of $15,863. The student loans are close to $33,090 Also, the Consumer Financial Protection Bureau shows that there are approximately 52% of medical debt credit bureau fillings.

As a single parent, if you’re caught up in excess debt, you have company! However, this fact shouldn’t be an excuse to keep incurring debt. Being enslaved to debt is not a good feeling at all. It continually affects your mental state, work, and personal relationships. It also stops you from generating more wealth. Some people incur as much as $10,000 credit card debt to meet their daily expenses. However, there’s a solution to this problem. You have ways to get clear of this debt.

Today, the single parents are carrying the burden of consumer debt! Managing everything on their own is indeed a tough situation to control. However, there’s government assistance. Managing debt as a single parent needs a little more than government assistance. It is here the concept of debt consolidation comes to work. Single parents can combine debt consolidation along with government debt relief schemes and manage their debt.

Three ways to manage single parent debt

Smart debt consolidation seems to be one of the best methods to manage personal debt for single parents. And to know more on this you can check sites like Nationaldebtrelief.com/ and others. It will help you get a better idea of the subject and approach it better.  

Using debt consolidation here are three ways in which single parents can manage personal debt.

  • Managing personal loans

Talking about debt consolidation, a personal loan is the first thing that comes to mind. You can repay this loan amount having a low rate of interest. It’s one of the best choices to make when you have other debts to pay off with a high rate of interest. Since the monthly amounts are small, single parents find it affordable to pay off their debts. The primary challenge is to search for the agency that provides a personal debt consolidation loan for single parents.

However, to qualify for this loan type, you need to have favorable creditworthiness. Else a lending institution will not be keen to provide financial aid. Do you have credit cards with balances that have outreached the credit limit? If yes, then you might face hurdles in procuring personal loans.

On the other hand, some institutions are willing to lend money without checking the credit score. These institutions fix an amount, which the single parent has to repay without fail. It provides the scope to liquidate all the remaining debts single parents have to get completely debt free. But before you seek out personal loan debt consolidation, keep a tab on your credit scores. If you want to apply for loans that you can’t qualify, then you would be putting yourself in excess trouble.

Furthermore, it is always a smart call to learn and recognize the probable loan options that are available to you. If an institution providing debt consolidation loans offers a low rate of interest, it is always helpful. Also, a flexible repayment time will enable you to get debt free within two to five years. Furthermore, it will motivate you to manage your finances better.

  • Debt management consolidation plan

The other method to consolidate debt for single parents is by enrolling for debt management plans. The organizations offering such programs are much the ones where you can apply for your consolidation loans. Here you will have a counseling agency, which will repay your debts to your creditors. Every month you will have to repay the counseling agency without fail. Your interest rates will be much less here, which will make the monthly payments more comfortable and free of burdens.

Are you wondering about the advantage of this debt consolidation option? You don’t require a favorable credit score to qualify. Furthermore, few institutions include budgeting counseling in their service package. So, you have access to helpful insights. If as a single parent you face issues in financial management, this option is the best one for you.

  • Credit card consolidation

Similar to a personal loan, credit card consolidation is also an excellent choice for manage debts. You can opt-in for a credit card having a low-interest rate or even a 0% balance transfer. It is also a great way to consolidate a high-interest debt amount. But get clear on the terms and conditions that might apply. Some companies can charge a nominal fee for credit transfers. The price is generally anything between 2% and 4% of the overall transferred amount. In some instances, the loan offer has an introductory/teaser rate as well. For example, it can carry an offer from 0% to 3%. Usually, this is going to last for one year to 18 months. And after 18 months, your interest rate will increase significantly.

This loan management choice is apt for the single parents who can qualify for a debt transfer with a reduced interest rate and lesser minimal charge. It is helpful that the single parents can repay the entire balance amount before the teaser rate expires. However, it’s essential to ensure that the credit card doesn’t incur any other balance amounts or charges, to avert various interest rates.

Today, the several financial and debt consolidation institutions have their team of professional counselors. These counselors are available to work your repayment plan, fix a specific budget and calculate the interest. All these are arranged keeping in mind your income.  Some institutions also have fee-based programs for single parents that will reduce the time required for single parents to repay the bills every month.

Staying caught up in debt is not the best way to lead life. The idea of debt consolidation is not to take away all your debts. Instead, it helps single parents to manage their debt repayments better. However, it also ensures that no one misses the debt repayment on the fixed time. And on the whole, the process motivates single parents to get better with their finances and has a good credit score.

Comments

  1. Sujain Thomas says

    Thanks a lot for writing such a great piece of content on “Three Useful Ways to Manage Single Parent Debt”. Many people can benefit from this post. There a lot of problems for a single parent when it comes to financial problems. Many parents take debt loan to recover up from financial issues but they end up in debt loan issues. These points mentioned above can get you to manage your debt successfully. So we should follow all the ways mentioned in this article. Thank you.

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