Getting your debt under control
Being a single dad (father) it is easy to get into some debt trouble. You might have been in trouble before you realized it and it has now reached its tipping point. Below are some debt advice ideas that might be able to help you with what seems like such a daunting task and never ending battle.
The first tip is to be patient. This has got to be the most important debt advice anyone can give you. You didn’t acquire this amount of debt overnight and you will not be able to get rid of it overnight as well. Overcoming debt is a marathon and not a sprint. It may help to have some short term goals along the way to help keep you motivated and patient while you work on the longer term issues.
Secondly, stop borrowing money! Everyone has probably heard the term before that you should not throw good money at bad. That completely applies in this situation. Some of the less reputable debt consolidators try to tempt you will lines of credit or a home equity loan to pay your bills. This is not a good solution because although you may have a decrease in monthly payments in about two years you will be deeper in debt. A quick look at history will show you that most people that get these types of loans return to their bad credit ways. Would you really want to lose your home over a defaulted home equity loan? I know I sure wouldn’t.
Try to pay a little more on your credit cards than the minimum monthly payment. These companies are setup so that if you only make the minimum payment it will continue to be a drain on your finances for years longer than it ever should have. Little things will always help in this case. Even $10 to $20 extra a month will make a significant dent into what you still owe for the card.
You need to take control of your finances instead of letting your finances control you and your ever move. You will hear that the biggest mistake that people make concerning their personal finances is that they wait too long to do anything about it. Gather all of your bills and write down all of your expenses as fast as you can so you can get a good understanding of how big your problem is. Trying to reshuffle all of your debt around and telling yourself that you’ll get to it some other time is not going to cut it.
Track all of your expenditures. Most people don’t do something as easy as this. They just spend without ever being able to go back and take a look to see how they are spending their money. This can be very crucial to helping yourself go out of debt because you may have a different view of how your money is spent when you go back and take a look at things a month later rather than looking at things as they happen. You will also notice how even the little things can be a constant drain on your income.
Do your best to trim your spending as much as you can while still being realistic about living life for you and your family. There are many people in this country that carry up to nine credit cards. That is completely unacceptable. You should only have one to two credit cards and that is it. If you have more than two than try to get all of the balances forwarded to the card with the lowest interest rates. As soon as you start getting those cards paid off you need to cancel them as soon as you can.
Controlling your debt can be an arduous task but, it is not something that is impossible to overcome. There are many resources on the internet for debt advice like this site. Understanding that all it takes is some common sense and a little will power and you will be able to get out from under your debt and start gaining back control of your own personal finances.