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Easy Steps To Manage And Get Rid Of Debts By Single Parents

Just like any other borrower, even single moms and dads too can get rid of their debt or multiple debts for good by following a few simple yet effective steps. To start with, you must know that you are not alone in this world that is living with a consumer debt or even a lot of debts.

Debts come in all possible forms such as personal loans, credit card loans, mortgages, student loans, auto loans, medical debts and much more. It is natural that you will take on anyone or a couple in your life especially if you are the sole earning member of the family.

However, the fact that you are not a weirdo does not give you the liberty to take it as an excuse and overlook the consequences of being in debt for a long time. In fact, you must work like crazy to pay your debt or debts off and consider all available options, consult with financial experts and follow one to reduce and eliminate your debts.

Living on a month-to-month basis owing money to others means all that money you earn is not yours really. You will be enslaved to debt for your entire life making it miserable for your short-sightedness. It will affect your mental health, relationships, and even your career choices. In short, it will prevent you from building wealth making your days stressful and exhausting.

The steps to follow

Now that you know that you are not alone there, it is time to focus on the steps to follow to get rid of your debts quickly. Remember, taking on a new debt is not the only way to get rid of previous debts. A little bit of planning and strategic approach is required to be always ready to pay off your monthly bills. All these steps are tried and tested methods to deal with the personal debt crisis and get rid of it. There are a plethora of analog and tech resources such as Nationaldebtrelief.com that will help you in this endeavor.

Be honest with yourself – Accept the fact that you are in debt which is someone else’s money. It is your legal as well as social and moral responsibility to repay it on time and abide by the terms and conditions of it.

  • Get real – Know your financial situation and face the reality of it, no matter how difficult or ugly it is. Collect all financial statements of each of your debts such as credit cards, student loans, medical bills, car note, home equity line, mortgage, personal loans even if it is from your relatives and friends.
  • Get others involved – You may live alone, but that does not mean you cannot consult with others or get them involved in your novel idea to get rid of your debts. Be 100% transparent when you make a plan on paper and be diligent and committed.
  • Credit score – Always focus on your credit score and get it for free from different websites. This will help you to check the accuracy of the report as well as the status of your debt. You will come to know about missed payments if any along with the notes against these and your credit limit.
  • Organize yourself – Make a list of all your debts and organize it including the rate of interest, the deadlines of each debt and the monthly minimum payments. This will help you to create a proper monthly budget and set a personal monthly goal.
  • Budget yourself – A budget will help you to make out how much you earn and how much you spend and whether there is any scope to reduce your expenses by foregoing a few till the time to attain financial freedom. This will help you to know how much you can afford to pay towards your monthly bills.
  • Research – Knowing about your credit score, find out the loan rates and lower credit cards whether you qualify for these or not. You may get a 0% balance transfer which is a great way to start paying off your debt and at the same time save a lot of money on interest down the road.
  • Be diligent – Commitment and diligence are the keys to success in any field, whether it is for finishing a project or paying off your debts. Make sure you know well about the fine print and pay the premiums on time. Pay the balance off or transfer it before the promotion period expires but be honest.
  • Negotiate – Negotiation plays a very important role in such matters. Contact your creditors and credit card companies to negotiate for a better rate so that you are comfortable with the monthly payments. Make sure that you ask for and commit only that you can afford to pay. False promises to gain immediate respite may haunt you later.

Choose the right method

You must choose the proper method of repaying your debt according to your affordability. The two main methods of paying off debts are debt avalanche or debt snowball.

  • Debt snowball – This method includes paying off credit cards loans or any other debt first that carry the lowest balances. The advantage of this method of repayment is that you will get a moral boost, psychological and emotional delight in paying off a few accounts quickly.
  • Debt Avalanche – This is the second method that involves paying off those debts first that has the highest rate of interest. This way you can deplete the high-interest debts faster and thereby you can save more money.

However, the method you choose must be in accordance with your financial condition and hence expert consultation is advised.

Rely on professionals

It is wise to seek help from the professionals if you are serious about getting rid of your overwhelming debts. The expert credit counselor will create the best debt repayment plan considering your financial ability and may even suggest you take on a debt consolidation loan in which all your debts will be combined into a single loan of a lower rate of interest.

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