How easy it would be to get approval for a debt consolidation loan in three to four simple steps when you are struggling with unmanageable debt and financial conditions every day as the single parent! Well, the pain of single parents is something only another single parent would understand by heart. Running a family, and raising a growing child single handed is no joke. When expenses are all covered by the earning of one person, and you have no helping hand as such, then life actually becomes challenging. Top it up with restricted income which does not cover all needs, and you really do feel miserable most of the time.
The responsibility of the kid and expenses
Kids have their needs and raising one healthily needs a good amount of money. From a balanced nutritious diet to good education, books and accessories for education, games and toys for playing and brain development, extracurricular activities, extra coaching classes, finishing schools, excursions, traveling, social development programs and many more things have to be taken care of with their full expenses when you have raised a kid. And this means a considerable portion of the income goes for the cause before meeting other expenses of household (well that is how parents prioritize the needs of kids).
Other responsibilities and expenses
Besides the kid, there are many more expense related responsibilities to be taken by you. This surely includes grocery bills, utility bills, travel expenses, mobile and internet bills, cable bills, medical insurance, and other insurance premiums and so on. With that, a house or car mortgage EMI, house rent, and many such things may get included. This means you have a lot of things to cater to actually as the single parent all on your own.
Figuring out expenses and debts
The burden of loans does not seem so prominent and obvious in the initial days. When you get separated, divorced, or widowed, then you just take each day as it comes through the coping up and adjustment period. Then you just have to take control of things and arrange for the funds to get on your own. The previous carryover debts from the marriage or debts due to the new establishment or settlement is common in such cases. Gradually when you get settled into the new lifestyle, you realize the expenses, the responsibilities, and the need for a budget and savings and so on. And it’s during this phase that you find out how much money you owe and how much you have in hand to save. This is the time you realize the burden of loans.
How do your expenses and debts start squishing you?
When you see that your loan EMIs are eating off your hard-earned cash and not letting you save and invest for the future, then you feel frustrated. Still, you may do away with this by paying off the debts gradually through the years. But the challenge begins when you discover that after taking out the compulsory monthly expenses you are left with an insufficient amount to pay the loan EMIs of the month. And there you start to feel the deficit.
Managing this way and that and curbing some expenses may help just for a few months, but then again extras and emergency expenses do come by when your funds get spent elsewhere without prior planning, and you are left with nothing to pay for the loan EMI. One non-payment or late payment results in late fees added to the next. Delayed payments month on month keeps on increasing the load by added penalties. So, things get out of hand, and you feel too burdened with debts. Then debts feel unmanageable and pressurizing. And at this point, you feel that you need help.
How to analyze your financial situation?
Even before you look elsewhere for help, you must first analyze your financial situation. To do this, you will have to calculate a few things. Find out your compulsory monthly expenses for living. Next, find out the total amount you should pay each much towards debt repayment. Finally, see if you have any money left in a month to save. And if you have anything to save, then after savings what are you left with for emergency fund building or investments.
When are you in trouble?
The situation is deemed worse and unmanageable when you find it that you are not doing any savings, and after the monthly utility and living expenses, you have insufficient funds to pay for the cumulative debt installments. This is the situation when you fail to pay every month, accrue penalties, get your credit rating affected for late and nonpayment, and finally succumb under financial pressure to take payday loans or other high-interest loans.
Finding a solution through a debt consolidation loan
A debt consolidation loan can be an excellent solution to such financial stress. You can study this from resources like https://www.libertylending.com/ and can come to know how application, approval, and payment for debt consolidation loans can be simplified online.
Debt consolidation loans are designed to offer you a loan amount on a low-interest rate for a long tenure to pay back at ease through small EMIs. Such loans allow you to pay off all existing bad debts with their pre-closure charges and penalties. And then you are left with this only one loan which you can pay easily while being still left with enough funds to save money.
These days, debt consolidation loans can be applied online. And approval rates are very high when you have a fixed income with employment proof of more than 6 months, and residency proof too for at least 6 months. Interest rates are low and fixed. And payment of the loan EMIs is also made online. From application to approval, and payment, all can be done online in simple, easy steps. The only factor you need to get things processed is a healthy credit rating. And that is why a timely evaluation of your financial situation is just as the single parent so that you don’t get your credit history and score too badly affected from challenged loan payments.