Struggling financially could be really tough for everyone. It could, however, be extraordinarily stressful in the case of a single parent who is juggling with his finances, parenting, and work all on his own. If you are a single parent, you seem to be responsible for the smooth functioning of your household and happy life for your family especially, your kids. As you are running the show without a partner, you would be solely responsible for your family’s destiny. We know that many individuals are compelled to live with a huge trauma of financial concerns for years before they start seeking debt relief options and effective debt solutions.
https://www.forbes.com presents some mind-boggling statistics to prove that the United States is actually, plagued with debts. “Average credit card debt for indebted households is now at $16,048, and average student loan debt surged over $37,000 last year. The average loan for a new car is over $30,000 and nearly 69 months long, and Americans owe an average of $196,014 on their mortgages according to Experian.”
We know that slow to almost the flat growth rate of income has definitely, not been able to keep up the pace with the ever-increasing costs of living during the last decade and that has compelled several individuals to depend largely on credit cards and some other effective means of credit for getting by. Since credit has been relatively easier to acquire particularly, during the past two years as lenders and banks have actually, eased some of the lending practices. However, now the debt issue would be further aggravated.
“Americans are in a borrowing mood, and their total tab for consumer debt could reach a record $4 trillion by the end of 2018. Americans owe more than 26 percent of their annual income to this debt. That’s up from 22 percent in 2010. It’s also higher than debt levels during the mid-2000s when credit availability soared” as per https://www.cnbc.com.
One of the worst affected groups is single parents, as far as this ever-increasing credit card debt issue is concerned. Leading a life with just one income could prove to be difficult and full of hardships if you need to bear the cost of bringing up kids. Kids are certainly a costly proposition and no doubt about that. Single dads or moms need to take care of both the basic requirements such as food, shelter, and clothing and also, the finer requirements such as school supplies, medical expenses, and costs associated with extracurricular activities every month.
We know that when you do not have adequate money for making ends meet, several single moms and dads would be depending largely on credit cards for getting by throughout the month. Without radical modifications in the overall lifestyle or a substantial increase in the income, things could culminate in insolvency eventually. However, here are some simple but effective money-related strategies so that they could help you stay away from overpowering debts. Visit toptenreviews.com for perfect debt management and relief solutions.
Generate a Realistic Budget
Most Americans are not used to having a budget and many of them have no idea about ways to create a proper monthly budget. Most people in the United States only love to go on spending money and paying the bills and that is precisely the way they get by throughout the month until the month end. The fortunate ones have ample amount to get through the entire month without any monetary hassles. However, many of them would surely encounter a major shortfall of cash compelling them to use credit cards to make all the payments whenever bills are generated. Americans need to realize that chalking out a budget is a wise step and is not such a difficult task.
You must understand that you have access to a fantastic array of resources and even if you have no knowledge or experience in creating a personalized budget, you could easily go about creating one with the help of effective budgeting tools online. Chalking out a monthly household budget would imply allocation of your portions of income to specific expenses and ensuring that you stick to the budget every month.
You must not dedicate more than 30 percent of your income towards housing since that may lead to financial shortfall or crisis eventually. If you clearly make a comprehensive list of all your present financial obligations and compare them to precisely your net income, you could understand exactly where you are going overboard and overspending. You could even calculate how much shortfall is there in terms of your income to run your family comfortably.
Make Your Bill Payments Timely
You need to stay updated on your bills. You simply remember that if you fall behind on your credit card repayments it may trigger some serious repercussions.
Remember lenders would surely be reporting late payments and the entry would show on your credit report so your credit score could be hurt or damaged. Moreover, lenders tend to be less forgiving and quite strict in terms of late payments. They would be charging really stiff penalty fees on account of late payments. It is important to take some proactive measures if you are failing to pay your monthly bills as per the already scheduled due date. You could request lenders to shift the due date to a more convenient or favorable time every month. Moreover, it is best to pay off all your bills that charge the highest penalties for late payment on a top priority basis.
Get Rid of Unnecessary or Frivolous Spending
You need to evaluate your spending. Go through meticulously all your bills every month. It is the best time to reassess your spending habits and identify effective ways of eliminating expensive and unnecessary expenses. Go through your phone or cable bills and identify areas where you could reduce your monthly payments every month. Start doing some cost-cutting every day and consider lifestyle modifications.
You must follow the above strategies to stay out of overpowering debts. You must consider making certain lifestyle alterations as a single parent and run your house accordingly. You could avoid drinking the costly morning coffee or consider opting out from all sorts of eating out temptations. Try to reduce small expenses that seem quite insignificant as compared to your day-to-day existence. Manage your finances well to stay out of debts.