How Can Single Parents Reach Financial Stability?

How Can Single Parents Reach Financial Stability?
October 8, 2018 Justin Jersey
Justin Jersey
In Business
financial stability

Government grant programs often are not enough to meet the financial crunches of single parents. Some single parents in spite of being under severe debt do not get enough funding or don’t become eligible for grants from government or charitable trusts. And some single parents do not get enough help from whatever grants they get. Altogether sustaining financially stable as the single parent is much harder than it seems. And hence single parents are the biggest applicants for loans.

Understanding where you stand financially

If you are a single parent dealing with heavy dues and debts everywhere, then now is the time for a splendid change in your financial situation by sorting through debt solution options. How you can deal with debt, which kind of debt is manageable, when debt gets unmanageable when to take a step for unmanageable debt when to deem a debt as a problem issue, and many such things need to be understood so that you can sort out your financial problems better. Based on the analysis, you may then go for a consolidated loan after studying debt consolidation feedback to handle things better.

When is a debt manageable?

A few things must be analyzed in your current financial situation to understand that you or not can manage the debts you have now. First, you will have to see if you have a stable income or not. If your income is stable, and you bring home a fixed salary every month or earnings inside a range from a business, then you are stable in terms of earnings.

Next, you will have to see if you are able to save any money for the future and emergencies after taking off your household running and child raising expenses from the earnings. If you are saving well, managing all expenses, and yet paying off the dues on time, then you have nothing to worry of. You are financially stable, and you can continue like this until you clear off the debts. In this case, the conclusion can be drawn that your debt is very much manageable.

When does debt get unmanageable?

An unmanageable debt means a problematic debt. The problem the debt may give you varies. You may feel like after paying off the debt EMI each month and taking off expenses from the income you are left with nothing to save. There you may want to reduce the amount of EMI so that you are left with some amount to save too. You may also feel that after saving and taking of expenses, you have little to pay the debt EMI. When saving is your first priority, then you must think about it, and try to make the EMI manageable through some means.

You may also find out that after the household and child-related expenses you are practically left with nothing or too little, which neither can pay the debt EMI nor serves well for savings. This can result in subsequent non-payments of the loan EMIs and resultant penalty charges and default records. Such case of late or non-payments do get recorded in your credit history and lowers your credit rating with consistent failures to pay. And in this case, the debt is concluded to be unmanageable debt.

What to do with unmanageable debts?

Unmanageable debts must be fought off. And there are some nice ways to fight debt. Some ways are strategic planning. And some involves taking help of external resources. Strategic help begins with planning and budgeting. Debt consolidation loans can take help from external sources.

How to plan and budget?

If you have been running your household without many plans, then now is the time to look back, evaluate, and plan smartly. Cutting off extra expenses which are not important for survival is the first strategy. This may include the cable TV monthly, the gym membership where you don’t go very often, the society charities and charges where you participate seldom, high-value internet packages which may be compromised, and so on. Therefore, you may take some steps for cost-cutting for better tight budgeting. A tight budget releases some extra funds for use, which you may then adjust in the debt or savings department and feel sorted. This is systematic planning through effective budgeting and sticking to the plan.

How to go for external help?

Help from external sources can also help you fight debt, and improve your financial situation and credit records. This starts with an application for a debt consolidation loan. Debt can be consolidated. This means debt can be managed by availing another new and big loan at a low rate of interest to pay off the existing loans.

If you realize that you are paying an EMI for debt, which could have been lowered on availing another loan from another source at a lower rate of interest, then you can do this. Often in crunch situations, single parents take sudden loans without thinking much about the rate of interest or tenure. This results in the calculation of a huge unaffordable EMI. When you take another loan to pay off this loan fully with preclosure penalties, and also enjoy a longer payback tenure and low-interest rate lowering the EMI, then that is how you consolidate existing debts.

How to get a debt consolidation loan?

Debt consolidation is a perfect solution for solving a bad debt situation with a fresh debt, and yet helps you manage all the problems from the front. It’s all about a small adjustment to make things more bearable and help you save for the future. The simple steps to avail the consolidated loan involves applying online, completing the documentation online, waiting for approval which also you are intimated about online, and then paying off the loan EMIs every month online again.

Finally

To feel confident again with your responsibilities and raising the kid, you must feel financially stable. And a good budgeting, proper savings, and consolidating debts on demand helps you build the stable future.

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