You must have witnessed how vastly people are changing with the time and also improving their lifestyle and standard of living. You know that for living a higher standard of living, you require a lot of money in your accounts. Those people who are earning a high amount of monthly income can be able to afford such a lifestyle whereas those who don’t have earn enough to support such a lavish lifestyle, they opt for the option of either borrowing the money from their friends or they start looking for multiple jobs where they work hard and become financially capable of fulfilling their dreams.
In the case of a single parent, the situation is slightly complicated and different. It is tough and full of challenges to manage the house by themselves without any financial aid. They have to raise kids, looking after house rent or mortgage, paying utility bills, medical bills, etc. and managing all these bills in the low end or average wage becomes hard. Sometimes, single parents inquire a high amount of debt in order to fulfill their desires and look after their family needs. With the debt and expenditures, they often face hard time to repay the debt and side by side maintain the family expense. Many options can be helpful in sorting the debt problem and managing the expense within the income.
- Applying for Loan to cover multiple debts
Many times, a person can manage a good credit score even if they are facing some financial crisis. They own a house, so they have no worries about rent. They can be eligible to apply for a home loan. Using the loan, you can pay for the debts and also eliminate them completely. This option can be a real help, and you can pay off the loan installments easily from your monthly salary. It is difficult to pay multiple debts of different rates of interests but with the loan, you can pay all the multiple debts, and you will be left with only loan debt which is easy to manage.
- Evaluating Debt Consolidation Loan plan
In today’s time, it is tough to pay all the debts when you are not earning good enough. A single parent might face difficulty in paying the debt amount if they don’t have any financial backup plan or support. You can think of paying your debts through debt consolidation loan plan.
In this plan, you will prepare the list of all your multiple debts. Next, you will have to add them together and consolidate the number of your debts. Now, you can apply for a consolidated loan that can help in paying the debt payments. Once you pay the all your multiple debts with the loan amount, you will be left with one single debt, i.e., a loan which you can be paid your salary. The lenders often provide money at the lowest possible rate of interest. This method can help in taking the debt pressure off from your shoulder.
- Debt Relief plans
You can consider for getting relief from your debts is a debt settlement plans. You required to set up a meeting with your creditors and tries negotiating with them about the terms of your debt. You can tell them about your financial situation and then request them to reduce some amount from the debt payments. You can take the help from the third party that will work as a mediator between you and creditor. For more information on debt relief plans, you can visit nationaldebtreliefprograms.
Such third-party agencies play an active role in sorting the money issues, and they set up a meeting with the creditors and their client. They propose negotiation in the debt amount so that their client could able to pay the debt. This option may affect your credit score. If your creditors agreed, then you will be paying less than your actual debt. And also, you are required to pay fees to the agency for helping you through the negotiation deal.
- Preparing a monthly budget
You need to start preparing a budget based on your income covering your payments for expense and debts. A person can easily manage a monthly expense through the budget. If they follow the budget regularly, they can start managing their household easily and other expense as well as managing payments for the debts. If your budget is not able to keep up with your income, they can start cutting unnecessary slacks and only keep the expense of needed items. You can take ideas and information from online on how to prepare an efficient budget.
- Thinking of bankruptcy option
This method requires a lot of attention and serious discussion. When your debts are out of hand, and you are unable to pay them back, then you can think of considering the bankruptcy option. You can talk to a legal attorney and take the valuable advice. On following the bankruptcy option, all your assets will be sold for settling the debt amount. By doing so, you will be causing some damage to your credit score and in future might not eligible for any loan. The bankruptcy option will auction your assets like house, office, land, etc. and the bidding amount will help in settling the debts incurred on you. Bank will be held responsible for the auction. 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.
Conclusion
It is really tough for a single parent to take care of house management and debt management in the case where their earning is not sufficient enough. They face challenges and hard time in opting for a solution which will be a help in managing their expenses.
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