Navigating finances as a single mom can be tough. Balancing expenses like rent, utilities, and debt payments can lead to incomparable stress. But if your debt exceeds 20% of your income, it’s crucial to take action. If you need to get out of debt, consider these solutions.
- Budgeting: Start by tracking your income and expenses. Cut back on non-essential spending and set aside a portion of your income for savings or debt repayment.
- Debt Snowball Method: Focus on paying off your smallest debt first while making minimum payments on others. Once the smallest debt is cleared, roll that payment into the next smallest debt, and so on.
- Debt Avalanche Method: Prioritize debts based on their interest rates. Pay off debts with the highest interest rates first to minimize interest costs over time.
- Credit Counseling: Seek professional help from credit counseling agencies. They can provide personalized advice, negotiate with creditors, and help you set up a debt management plan.
- Debt Consolidation: Combine multiple debts into a single loan with a lower interest rate. This simplifies repayment and may reduce your monthly payments.
Credit Counseling You Can Trust
National Foundation for Credit Counseling
Money Management International
https://www.moneymanagement.org
GreenPath Financial Wellness
