Being an unemployed, single mom in debt can be frustrating and frightening, as you worry about how you will provide for yourself and your children. Luckily, by taking advantage of some money-managing skills and the federal and private resources available to you, you can quickly get your debt under control. Though most programs will not offer you a check to pay back your debt, they will help make payments easier by reducing the amount of money you spend on living expenses and increasing job opportunities.
Money Managing
One of the easiest ways to get and stay out of debt as a single, unemployed mother is to learn money managing skills. When you avoid charging purchases on a credit card or taking out loans, you can devote your income, whether it be from child support or the sale of your belongings, to reducing the debt you have. According to MSN Money's MP Dunleavy, this is how one single mom managed to support her three children and pay down her large debt with only a $31,000 annual income. Dunleavy notes that this woman adopted a new attitude about money, spending only when she had to, prepared by looking at her bills and expenses for the month and saving whenever she could. Check out money managing books from your library or meet with a free money counselor to develop a plan that will help you put the little money you have toward working to get debt free.
Government Assistance
Government assistance programs can help you reduce your debt by reducing your living expenses, so you have more money to devote to debt relief. Welfare benefits, which differ from state to state, offer help to cover unemployed, single moms' living expenses. In addition, the Federal Housing Administration makes finding affordable housing easier for low-income families. You can learn more about the welfare benefits available in your state by contacting your library or local government office; they can put you in touch with the correct administration.
Non-Profit Organizations
Many non-profit organizations offer funds to unemployed, single mothers to help them get back on their feet. One such program is the Women's Independence Scholarship Program, which offers funds for college to women who have suffered domestic abuse. The program mainly offers assistance to single women with children. The philosophy of the program is that education can increase the opportunities available to single mothers and their children, bettering their lives. Entering college means more job prospects, both before and after graduation, as most colleges offer many opportunities for student employment. When you have more income from a job, you can devote more money to getting out of debt as soon as possible.
Debt Relief Programs
There are a number of non-profit and for-profit debt relief programs that can help you manage your debt without filing for bankruptcy. According to Top Consumer Reviews, the best debt relief programs offer multiple options, reliable support and they only get paid if you save money. According to SingleMomFinancialHelp.com, single moms can try to negotiate their debt with their creditors before entering a debt relief program. One of the ways of negotiating debt is to write a "hardship letter" to your creditors, letting them know why you can't pay back your debt, what you can pay and when you expect to be able to pay the amount in full.
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