Being a single parent is difficult. You have to manage everything yourself, the bills, the lunches, the school fees, the trips to the ballerina, and not to mention, THE BUDGET. Single parents have higher debts than most other demographics and with good reason. In the whirlwind of your life and managing your children on your own, there is a high possibility that you may find yourself behind in a lot of your payments – your mortgage, your car payment, your rent, school fees, you name it!
As a single parent, it is your sole responsibility to provide for your children and to give them a comfortable and secure environment. If you’re worried about how you’re going to pay your bills at the end of the month, there will be more focus on money and less focus on your children. You want to be able to leave financial issues at the door when you come home. Therefore, debt consolidation is a great idea. Instead of having to worry about multiple debts to pay off, it’s easier to refinance and to pay off all your loans with one major loan. This way it’s easier to manage, you have a longer time pay everything off, and there is only one interest rate you have to worry about!
Debt consolidation is a method of debt refinancing that helps individuals who are having issues handling multiple debts. By taking out one major loan, you are able to pay off all the other loans, leaving you with one loan to pay off only. In the long run, believe it or not, this will actually save you money! With lower interest rates, you won’t be paying an arm and a leg just to cover the extra interest on your loan. You’ll notice a substantial decline in your loan as you keep up with your payments.
Debt consolidation is a much more favourable way to pay off your debt. However, you must conduct your own research and shop around for the ideal company and debt consolidation package. Look for what is beneficial to you and will actually help you get out of debt rather than push you further into it. There are two different types of debt consolidation, secure and unsecured. In a secure debt consolidation deal, the money you have been loaned is secured against an asset of yours, such as your home or car. Secured loans are offered to those who have a high amount of debt or have a bad credit history. You can lose the asset if you miss any repayments. In an unsecured loan, the company has no claim over any asset if you miss a payment.
There are fees and fine print that you must look out for when choosing who to consolidate your debt with. Some companies have higher interest rates than what you are currently paying, and other lenders may require you to pay off the debt earlier and in a fixed amount of time. If you’re unsure about what route to take, it would help to get some financial advice from a trusted financial advisor or accountant. These professionals can take a look at your overall finances and establish whether debt consolidation is the solution to your problem.
If you’ve decided to go ahead and work out a debt consolidation deal with a lender, and you’ve made sure that the interest rates and fees combined are less than what you are already paying in fees and interest, then rest assured that your debt will be managed accordingly. It’s important that while you’ve consolidated your debt that you don’t continue to rack up more debt. This is a chance for you to start with a clean slate and to free yourself from the worries of debt. Single parents already have enough on their minds, with dinners to cook and homework to get done, that financial issues should not be the prevailing thought on one’s mind when at home with children. Give yourself a break and learn from your mistakes. Once you’ve consolidated your debt, make a vow to yourself that you will be more careful in spending.
With debt consolidation, you won’t only be saving money by paying off one single loan with a lower interest rate. You will also be saving money by learning how to save more and spend less. Your money spending ways will improve and you’ll learn how to budget more efficiently. Debt consolidation programs also give you a chance to take a breath of fresh air and re-position yourself. You won’t feel so burdened by the various debts anymore and you’ll feel much more organized and in control.
It is important to tackle debts head on. Don’t hide from them or try to run from them, it will just make your debt even harder to manage. Debt consolidation is a great option if you find a program that offers exactly what you need at the exact price you need. Paying off debt has never been easier.
