Having debt for anyone can be tough, especially if you’re trying to take control of it quickly. However, being in debt as a single parent is even more difficult because there are the added expenses of taking care of your children while balancing your financial commitments. Here are some thoughts on being a single parent with debt, and how to manage it.
The Cost of Children
The biggest expense you have to deal with is also your most important one: your children. There are so many expenses that go into raising kids, especially when they are in school. You will need to buy them clothes (and lots of them since they will grow out of them each year), school supplies, and more. You will also need to provide them food (and as they grow older, they will want more of this too), and there will always be the birthdays, friends, and more.
The Cost of Debt
However, on the flip side, are the costs of the debts you have. There are good debts: mortgages and student loans, and there are bad debts: credit cards and personal loans. Good debts can become debts if you have too much that you feel like you’re trapped or can’t
afford them. And the more debt you have, the more of your budget it will eat up. And the more of your budget it eats up, the less you will have to provide for your children.
Options to Take Control
As such, you need to have a plan to manage your debts. You can try to do it on your own by putting together a budget and sticking to it. However, you may find that you need help to get out of debt as well. There are companies that specialize in helping people take control of debt in the exact situation.
You can also try to call your creditors directly, and see if you can negotiate better terms for your debt. This can work in many cases with mortgages and student loans, as they have many different repayment options for most people.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.