Debt Management Plan for Single Mothers
Contributed by Rachel s Pickett
Debt Management Plan for Single Mothers
If you are a single mother in debt, it may be beneficial for you to create a debt management plan. Raising children by yourself is very costly. Many single mothers find it hard to make ends meet. But, if you have gotten in to trouble with your credit, it is wise to create a strong budget that will work for you and your family.
Debt Management Plan Step #1
-CREATE A BUDGET
The first step you want to take when creating a debt management plan is to look at every aspect of your money. You should know what your total income earned after taxes is per month, how much debt you have, and what your expenses are. Being a single mother, it is important to already know what these amounts are. Budgeting for yourself and a child can be difficult if you do not know where your money is going.
Monthly Income
Your monthly income is your primary source of money each month. All monies that are disbursed to you should be recorded in this number. If the amount varies from month to month, then take an average number.
Total Debt
The next part you should look at is your total amount of debt. Add together all credit cards, home mortgages, personal bank loans, auto loans, and any other debt you may have. Write this number down.
Expenses
Add together the monthly expenses for you and your child. This includes gas, groceries, school fees, clothes, bills, and any other expenses like car insurance, or a phone bill. Subtract this amount from your total monthly income. If you have a negative number, you are spending more than you make. if you have a positive balance, then you should apply the remaining amount to your debt.
As you pay off your debts, make sure that you subtract the total amounts from your debt balance. If you need to create a new budget because of excessive spending, you should do it right away. The longer you ignore money problems, the worse they become. They will not go away.
Debt Management Plan Tip #2
-PAY OFF DEBT
