People are rapidly changing their lifestyles, so is their standard of living. But for a high standard of living, you need money in your pocket. Only those who have high monthly income are able to afford it, and for others who don’t have enough, they either borrow money from their friends to support their lifestyle, or they start working hard and become capable of affording it.
When this scenario comes to a single parent, the situation becomes slightly complicated. Managing the house by themselves can be a challenge for them. They have kids to raise, house rent or mortgage, utility bills, medical bills, etc. and if they have an average wage, then it is really tough to make all ends meet.
They are the decision makers and have the responsibility for the whole house. Single parents sometimes incur high amounts of debt to make both ends meet. Going ahead with debt, they face a real challenge in spending money on the household expense and therefore it is necessary that they seek some help for getting relief from their debt situation.
Single parents with a good credit score
Sometimes, a person even after dealing with the financial crisis and debt situation is still able to manage a good credit score. So if they have their own home, they can easily apply for home loan.
Taking a single loan to eliminate separate small loans
If you have a good credit score you can apply for a single loan. With this loan, you could able to eliminate some of your debts. The loan can be sufficient for coming out of the crisis and settle debts. This could be a real help, and you can pay off the loan from your monthly salary.
It is difficult to pay multiple debts with the varying amount but can be easy to pay one single amount with the fixed amount, i.e. a single loan.
Make sure you repay the loan on time
If you don’t have a home then also with your good credit score, you can still manage to get a personal loan. One thing you have to keep in mind is to pay the loan within the allotted time period.
Debt consolidation loan program
It’s hard to pay all the debts by themselves when you are the sole earner. A single parent might not be able to pay the debt amount if they don’t have any financial aid or advice. You can try paying off by working through the ways of the debt consolidation loan program.
In this program, you will have to make a list of all your debts. Then you will have to add them and take out the total. Once having the total of all your debts, now you can apply for a consolidated loan that can help in paying off the total debt. Once you pay the debt with it, you will be left with one single debt, i.e., a loan which you can pay off from your salary.
The debt consolidation loan doesn’t have high interest. The lenders often provide money at the lowest possible rate of interest and can easily pay off from the salary.
This method can help in taking the pressure off from your shoulder. For more information on debt consolidation, you can log on to nationaldebtreliefprograms.com.
Settlement of debt
Another option that can be considered for debt relief is a settlement of debt. Here, you need to contact your creditors and try to negotiate the terms of debt.
You can let them know your financial situation and then ask them to eliminate some lump sum amount from the debt amount.
Or if you think that the creditors won’t listen to your party, then you can take help from the third party.
Such agency plays an active role in sorting the money matters, and they often set up a meeting with the creditors of the client. They try to negotiate the debt so that their client could able to pay some amount. This method might have an effect on your credit score. If your creditors agreed, then you will be paying less than your actual debt which can affect the credit score. And also, you are required to pay fees to this agency for helping you out the negotiation deal.
Work on your budget
It is a slow process and requires your own effort. You need to start working on your budgets. A person can easily manage his monthly expenditure tasks because they have the whole chart in front of them.
If they stick by the budget, gradually they can start managing their household and other expense along with making small payments for the debts.
This method requires time and patience. If they find that the budget is more than their pay, they can cut out some of the unwanted slacks and only keep the necessary items. They can take help from online articles and blog based on budget and financial crisis.
This method requires some serious thought and is a tough call to be taken.
If your debts are unbearable and might not get settled easily, then you can think of going bankrupt. You can talk to your attorney and take his guidance.
By doing so, you will be giving all your asset worth of your debt which can get settled once and for all. By doing so, you will be causing some damage to your credit score and in future might not eligible for any loan. With bankruptcy, you will sell off your asset, and all your debts will get settled. The highest bidder will get your assets. You will require hiring an attorney, and for that, you need to pay some money.
As a single parent, it can be a very tough call to choose the bankruptcy option but if you are out of the option to pay back your debts then you will have to declare yourself bankrupt otherwise your creditors will keep on harassing you and building the pressure on you.
Single parent and that too sole earner in the house, the situation of not able to pay back debt could get worse and out of hand. There are now several aids available that can guide you in tackling your debt situation and control your expense to handle them easily.