Living expenses can add up quick and most of the time there is not enough money to pay even the most basic of expenses, that is when single dads can be inundated with debt. There are solutions that exist however, that can give you some financial help and not go bankrupt or destroy your credit.
Like noted in the paragraph above there are many ways you can free yourself from debt. There is a program that is called the Debt Snowball. This is a basic program than anyone can do including single parents. Just do the following steps.
The first thing you will want to do is list all of your debts and what each minimum payment will be. You will want to list the smallest debt first and then proceed to list each one after that in order finishing with the largest. The interest rates for each debt in this exercise is irrelevant, the balance of the debt is the only thing that matters.
Pay the minimum balance on each debt every month. Your goal will be to pay off the lowest debt first. When there is a time when you have some extra money to pay on some of your debt make sure you put it towards the smallest one. The short term goal here is to pay off the smallest debt as rapidly as you can.
Got the first debt paid off? Great! Remember the minimum you were paying on it? Take that minimum and apply it to the next-highest balance, in addition to the minimum. Now you’re paying twice as much, and you’re paying the debt off faster. It is snowballing!
Once you have that first debt paid off, take that amount and start applying it to the next debt plus the minimum you have already been paying. Now you should be paying almost twice as much and you should be able to pay that debt off faster. Then when that one is finished take all of that money (the first debt payment + the second debt payment) and apply to the next debt. You will keep repeating this until all of your debt has been paid.
It starts off slowly but, then gathers some speed as you go along. Hence, the term Snowball.
By the time you start getting to your larger debts you will be able to pay a significant amount of money on the large debt. This will then allow you to be able to pay more principal on your debt, which will then allow you to accrue less interest.
This plan is easy to do and it will help you stay motivated to see it all of the way through. When you put a lot of money towards your larger debt you never really receive any satisfaction from it. That is when you don’t stick with a plan. With this plan it allows short term realistic goals that will keep your motor running the whole time. Sometimes it can be fun to track your milestones and look back at them later.
This program is the best for any single dad looking for some financial help and it is easy to understand without you having to pay anyone to put it in laments terms. Good luck!