Sadly in our society debt is a huge issue for everyone. That is why we have come up with some tips for how parents can get out of debt. Debt can bog you down and make it feel like you’ll never find success in life. As a single parent that can be just one more thing that makes you feel frustrated and inadequate. Focus your energy on these things that help you overcome debt as a single parent.
Determine wants and needs. Make a list of your needs: utilities, insurance, groceries, car or mortgage payments, or gas. Then, make a list of your wants: new clothes, entertainment, electronics, or cable TV packages. It’s important to be honest with yourself. If you can successfully eliminate some of the “wants” from your monthly expenses, you often can save hundreds of dollars. You may even be able to negotiate with service providers for better deals.
Apply for loan relief. You may be able to find some relief if you’re still paying off student loans. Forbearance options may allow you to delay payments without penalty for a period of months. You can use that relief period to pay down other debt. (It’s also worth noting that you may be able to restructure any other loans you have, too. Call your bank or lender!)
Downsize your life. Everything can be downsized. Move to a smaller home or apartment. Sell your car and start using public transit, if possible, or consider bike commuting and carpooling. Hold a yard sale to sell items in storage. You can even downsize amenities like cable and cell service.
Hard work and dedication not only help pay down your debt, but also show your children how to live within their means and manage money. Involve your children in your fiscal decisions and start setting an example today!