Dumping debt can be a challenge for all family structures. The single parent household is a growing trend with 25% of American households being headed by single moms and 6% by single dads. (Source)
Single parents may find it particularly challenging to balance the duties of work and home while fixing finances alone.
It can be done.
For advice specific to single parents, I turned to a person who has walked the walk and come out on the debt free side of life. Aja Williams paid off $130,000 of debt while raising a magnificent son and she offered the following 5 points to help single parents who desire to live debt free.
- Get Organized: Know who you owe. Know how much you owe. (Key action item – pull your free credit report and gather mail from debt companies.)
- Create a Budget: Review it weekly or at least once per month. You need to see where your money is going and find ‘free’ money. Find out where you can eliminate certain expenses and apply the cash towards eliminating debt.
- Assess Your Skills:What is your gift and what do you have in the house? What can you do well and make quick cash doing (cleaning, babysitting, organizing things for others, cooking/baking, etc.)? Determine what you can sell (old car for parts, clothes, jewelry, paintings, etc.). The funds can be used to pay off your debt.
- Create a Debt Plan: Pay bills from smallest to largest. Contact creditors to make arrangements that work for you (make payments with – money order or cashier’s check). Call creditors if you run into issues with the arrangements down the road. Most of all – stick to the plan.
- Get an Accountability Partner: Find someone who can and will encourage you along the way. It may not be easy, but it is possible to DUMP YOUR DEBT.
Check out more of Aja’s amazing story. She continues to inspire!
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Do you have any more encouragement for single parents who are dumping debt? Please leave your tips below. Let’s keep the conversation going!