Single Mothers And Debt Relief

Single moms frequently check themselves with a considerable amount of debt. In many cases, they must start from scratch after a divorce. The debt quickly adds up, as they begin a new chapter in their life. However, there are options for debt relief for single moms.

If you are a single mom drowning in debt, it is significant that you have a full understanding of how much debt you exactly have. In order to check relief from debt, be sure that you sit down and make a compiled list of all of your current debt. Once you have an accurate list, then you could more effectively work to eliminate it.

Many single moms do not have equity in a home. However, if you do, then you may prefer to consider a home equity loan that could be used for debt consolidation. With consolidation, you compile all of your debt into one larger debt. Although you are compiling the debt into a larger debt, over time you would save a considerable amount of money. as you would only be paying one single rate of interest, you would be able to save the amount of money you are paying towards interest.

If you do not currently have a home or do not have equity in your current home, you could look at obtaining a personal loan. With a personal loan, you could pay off your other debt, just like with a home equity loan. Debt settlement is one of the quickest and easiest ways to acquire out of debt, without filing for bankruptcy.

A debt settlement company would assist to negotiate and lower your overall debt with your creditors. Your creditor would agree to accept a single payment to pay off your debt. Once the creditor accepts the single payment, they would then report to the credit bureaus that you have fulfilled your debt obligation. They would report to the bureau that you have either "paid" off your debt, "settled" or "settled for less than full amount". When in financial hardships, creditors are generally willing to accept a lower amount than you actually owe. They do this because they realize if you file bankruptcy, they may receive nothing.

Credit counseling could also assist with debt relief. Credit counselors could work with you to bring down your monthly payments and/or create a debt repayment plan. Though it may take longer to pay off your overall debt, you would be left with more money each month to pay other bills. be sure that you choose a reputable counseling service. You could ask family and friends for recommendations or check with the Better Business Bureau.

In some instances, it might be necessary to file bankruptcy. By doing so, you could begin with a fresh start. There are two basic types of bankruptcy, Chapter 7 and Chapter 13. With Chapter 7, you would need to sell off your non-exempt assets in order to make an attempt to repay your creditors. However, with Chapter 13, you would make a repayment plan through the bankruptcy courts.

Debt relief for single moms might be easier than you once thought. There are a variety of steps that you could take in order to bring you one step closer to financial freedom. Most significantly, once you have reached a point that you are free from debt, that you stay at that point.