Debt, whether from loans or credit cards, can weigh like an anchor on the single mom budget. Paying it off can also be one of the most difficult steps to take since the money goes out and nothing comes in for it. To make the process easier, formulate a schedule for paying down your debt, starting with the cards or accounts that carry the highest interest rate. Next in order should be the accounts that have the highest balances. Tips for paying down debt include:
Look for ways to “find” extra money to apply to your debt payments. For example, cut down on eating out. Reduce cable TV expenses by limiting the number of channels. Eliminate unnecessary phone expenses, such as extravagant data plans. Avoid impulse buying.When possible, pay more than the minimum payment. This will reduce the amount of interest you end up paying and pay off the debt quicker.Choose one debt to focus on, making the biggest payment you can afford while making minimum payments on any other debts. Once you have paid it off, pick another one to focus one, again paying as much as possible.Don’t get discouraged, even when it takes a long time to pay off your debt. If necessary, start by paying off a low-balance debt to keep you motivated.