The hands are always full for single moms who have too many problems on their plates. Taking up the burden of being the sole provider for emotional support and care can itself be quite stressful. Added to this is the worrisome job of managing finances which can make any woman jittery. Even before that they have to assume the role of bread earner which by no means is an easy task. Not all single moms are always fortunate to earn their living. Many of them have to depend on social security benefits if they are widows, and those who are divorced may have to depend on payments for child support or alimony. Overall, there are high possibilities of
Uncertain cash flows cause debts
The problem that is faced with such incomes is that these are likely to be reduced with time. Uncertain cash flows make financial planning quite difficult. Coping with rising cost of living and changing lifestyles makes it even tougher to manage finances without seeking loans. However, debts add to the problems as managing these become added burden. Although debts tend to lend some buoyancy to sagging finances but it is only a temporary measure. In the long run debts can stifle borrowers about which they have to stay alert. Debts can keep spiraling out of control, and at some point in time, seeking debt relief becomes imminent.
Debt consolidation is a short term measure
The kind of relief you seek would determine what kind of debt relief arrangement would be best for you. If you are eager for short term relief and do not mind to continue with debts, then debt consolidation can be thought of. In this method, you knock off many other loan accounts that run concurrently by availing a new loan that is used to pay off all other loans. This arrangement does not get you rid of loans completely but gives the comfort of dealing with a single lender that raises the hope of better loan management. Moreover, the new loan can be taken at lower interest that saves money even though the new loan continues for a longer period.
Filing for bankruptcy
Another way of wiping out loans altogether that can be thought of when you find yourself in a position where you are completely unable to repay the loans is to file for bankruptcy. If you are struggling with debts that are overwhelming and seem insurmountable, check out the Carson firm website, where you will come to know about the process of bankruptcy. Filing for bankruptcy gives you the opportunity of discharging all your unpaid medical bills, credit card bills, utility bills and whatever else may be outstanding. You start with a clean slate again.
Bankruptcy is meaningful only if you are eager to learn a lesson from your earlier experiences and take measures to improve the credit scores. Making timely payments of credit card bills and down payments for large purchases besides engaging in a frugal lifestyle are mostly recommended to help you gain better credit scores. Indeed, avoiding new debts is mandatory to enjoy the benefits of bankruptcy.
About the author – Mike Williamson is a financial analyst and commentator on personal finances. A management background has helped him gain experience in business financing too. He contributes regularly to the Carson firm website that belongs to a law firm that specializes in bankruptcy filing. A sports lover, he never misses the opportunity of surfing. A beach vacation attracts him the most.