Single mothers often face Debt, bankruptcy, and lower Credit scores. As per the National Bureau of Economic Research single-mother homes overwhelmingly are likely to experience poverty. It is women that headed over 85% of single-parent homes of which 42% were under poverty. Amid childcare, clothing, food, utility bills and housing payments, single mothers find themselves exclusively strapped for cash struggling hard in recovering their credit scores as well as evade declaring bankruptcy. Here are some Free Financial Assistance for Single Mothers.

For all single parents especially single mothers who are undergoing a terrible financial situation should opt for the best financial counseling program. But if the circumstance is not dire, following a good debt management plan will be an ideal choice. It can also get supplemented with online credit counseling. In case the financial situation happens to be grim, it is good to enroll for a bankruptcy counseling to decide should one need to declare bankruptcy.

Free Financial Assistance for Single Mothers

Do’s and Don’ts that Single Parents Should Follow While in Debt 

The financial crunch is a serious issue which tends to plague a majority of the single mothers. At the time of rising one or more kids, having a single source of income is likely to turn a financial emergency to a problem which can keep her teetering up to the extent of bankruptcy for years. Below is a list of the different do’s and don’ts that single parents should follow as this will help them in making better choices when it comes to their credit as well as manage their debt in a means which will prove beneficial both for the parent and the kids alike.

Do’s- First, take a look at the different do’s,

• Look for Chances to Build Credit- Paying in cash is a good idea whenever possible but it is also essential for a single mother to build her credit score. Having a credit line available and clearing the complete balance every month along with being a reasonable means of defraying costs for some weeks will also be an excellent means of building their credit score. So as a rule, the single parent should ensure not to invest more than she or he can pay in one cycle as this will aid them to prevent accruing interest keeping her credit score high.
• Negotiate- While a single parent may owe cash to many people, it does not mean paying everything at one go. Should they owe money, she or he can call the firm to which they owe money and thereby negotiate for the payment which they can afford. Most companies have programs which will prove beneficial for the working single mothers thereby enabling her in reducing or postponing some payments. Other companies take up a realistic look regarding what a single mother is capable of paying being content to get something rather than nothing. Of course, there will be no guarantee that an organization needs to negotiate with her, asking will not hurt.
• Consult the Best Credit Counselling Agency- Seeking help is a wise decision. For a single mother or father, it can be a challenge in admitting that they do not have all the answers. Being in debt is nothing wrong and here taking the help of debt management will be the right choice. A counseling agency (non-profit credit) can help them in getting back on track as well as accomplishing the different steps stated above. The debt will not require defining their or the children’s life. To reach out for help will be the finest means of moving forward with her life.

The Don’ts- Now take a look at the don’ts,

• Spend on Credit- Falling into a trap when it comes to spending money that one does not have is easy. Credit cards are specifically made for allowing the user to carry a balance yet it is crucial to take into consideration that the interest will accrue with each payment cycle. So this means a single parent along with being forced to keep paying for purchases that they cannot afford but also end up to pay more with time. Should she or he be capable of helping it, they should ensure in paying for all in cash. It will keep them against spending more than what they have in the bank account giving a better feeling as to where the money is getting spent every month.
• Payday Loan- Taking out a Payday loan on a short-term will be the worst financial move. That is because such loans are specially made for people with big debts to pay as well as need money quickly and those who have limited choices during emergencies. These loans will cost one more in the long run and also has predatory practices which can haunt one for many years to come. So a single mother or father must not take a loan that they cannot pay back along with making doubly sure that the loan they take will not have any interest rates that is predatory to payday loans.
• Ignore the Debt- Ignoring the debt is the worst thing a single parent can do. No matter they have moved, or the phone calls stopped, the debt record will still follow them. The failure of seriously taking a debt can get her into big trouble also resulting in legal actions. So if they decide to manage their debt and rebuild the credit, they should see her problems in a rational and calm manner.

Apart from these many other tips can help a single mother or father in solving the debt related issues. Paying the bill on time for instances such as credit card debts, utility bills, and student loans can help in fixing a credit score thereby assisting with management of debt. Monthly payments on a regular basis will have a positive effect when it comes to one’s credit score and on the other hand, missed, or late payments can ruin the credit score. The role of a single parent especially a mother is challenging, so it will take a frugal attitude along with some discipline and hard work to enjoy that stable financial path.