It is indeed a severe problem for a woman to live a life who has been recently granted divorce. Most of the time, single moms are overburdened with debt issues as they cannot meet bill payments, child’s education fees and other expenses due to lack of availability of fund. There is nothing to worry because various options are available for handling these financial crises.
Various Debt Relief Options for Single Mothers
Debt Consolidation Techniques
Nowadays, many debt relief companies are offering debt consolidation solutions for getting out of debt quickly. Every company follows its own business policy. Before you hire a debt consolidation firm, it is advisable for you to go through debt consolidation reviews that will help you to know about different relief options and these reviews will make you aware of operations of debt management companies.
It is always profitable to choose those firms that can offer consolidation loans at lower interest rates and charge nominal processing fees. Once you draw such loan, you can club all your accumulated debts into one unit and easily repay off the amount with monthly payment option.
Home Equity Loan
In some cases, single mothers get home as compensation, after granting of divorce. By using the equity of the home, they can draw home equity loans. While drawing this loan, the borrower should not be behind mortgage payments and should have a decent credit score. Such a loan provides extra money to a single mom, with which she can manage pending bills easily.
Lines of Credit
Single mothers can also seek lines of credit for paying existing bills and eliminating debt issue. This debt relief option allows the single mother to possess fund, which can be budgeted to last for months.
Line of credit often becomes helpful when a conventional loan cannot be procured. In addition, this relief option works great when the single mom fails to draw a home equity loan.
Using a line of credit for paying down debt and bringing accounts to active status is a huge sigh of relief after it is approved. Although this is another bill for paying off, it saves the borrower from suffering from mental stress as creditors stop giving calls asking for payments.
Single mothers can avail some funds through grant programs that act as debt relief options. The best part of grants is that you need not make payments in the future. A single mother can apply for one of the several government grant programs.
Through a single program, such grants are offered to single moms once in their lifetime. Many programs bear cap, which signifies the amount to be granted.
The borrowing procedure starts by placing a request letter. In addition, valid background information along with a strong proposal is to be placed before the government agency for the approval of grant. The bills along with balances are required for justifying the living expenses. Income status should also be included. All these information are required to determine the eligibility for the grant.
Credit counseling program offers respite to single mothers for getting out of debt. Under this program, a credit counselor helps the single mom to prepare a budget, where she can figure out all sources of income and make expense list accordingly. Budgeting helps in eliminating unwanted expenses.
If you as a single mother are suffering from debt issue, you can try out these above said options for regaining back the healthy financial status.