Being a single mom is one of the hardest jobs in the world. You have to worry about providing for your family, and sometimes it feels like there’s just not enough money to go around. But don’t worry, we’re here to help! In this blog post, we will discuss some tips for budgeting and getting out of debt to take the steps needed to becoming a debt free mom. Follow these tips and you’ll be on your way to a brighter financial future!
Here are some tips on how to get out of debt as a single mom:
1. Make a budget and stick to it.
This will help you see where your money is going and where you can cut back. Kumiko Love, the founder of The Budget Mom, was able to get out of $77,000 of debt in three years by following a budgeting method she developed herself. “I tried every budgeting method out there,” she told NBC. “Percentage budgeting, calendar budgeting, I tried the cash envelopes, I tried the half payment method, I tried monthly budgeting, and every single time at the end of the month I would come up short.” She developed her own system called “the budget-by-paycheck method.” Read more about her methods and copy them here.
2. Create a debt repayment plan.
List all of your debts from smallest to largest and focus on paying off the smaller ones first. As you pay off each debt, you’ll feel motivated to keep going until all of your debts are gone. Check out one of our partners, Tally, to learn about how you can consolidate your debts into one payment and get back on track faster.
3. Stay disciplined with your spending.
It can be tempting to use credit cards or take out loans when you’re short on cash, but this will only make your situation worse in the long run. If you must get into debt to improve your situation, one of the most important factors to consider is making sure you have a good understanding of APR and what it means. Stick to your budget and make sacrifices if necessary in order to stay on track. In today’s workplace, it’s now more common than ever to work from home. If you want to start working from home in order to be able to care for your little ones while you earn, check out 5 way to make money online or even how to start a career in tech. Explore different ideas to potentially generate a higher salary and make it easier to repay debts and stay on top of your bills each month.
4. Negotiate your Current Rates
After you dive deeper into APR, you might realize that your current credit card rates are not serving you well. Here is a handy script you can use to negotiate your current credit card rates:
“As a long time customer, I value your services and I am committed to paying off my debt and improving my credit history. In order to make that happen quicker, I would like to discuss lowering the APR on my credit card.”
“I have compared my current rates against your competitors and found that I am able to qualify for (insert rates here). Is there anything you can do to offer me a better rate?”
5. Research Different Rates
Credit Karma is our top pick for learning about your credit score and how to improve it. One of the handy features they offer for free is the different types of cards you are likely to qualify for based on your credit history. Even if you don’t sign up for a new card, this tool can help you research what rates you qualify for to help in your negotiating process.
There’s no magic formula for getting out of debt, but if you’re committed to making some changes in your spending habits, you can get there. It may take time and patience, but it’s worth it when you’re debt-free and have more peace of mind. It’s not too late to make your dreams a reality. We are here for you every step of the way, so head over today and join our community of like minded women who have created a safe space to discuss financial topics!