This is a sponsored guest post.
If you feel like you aren’t a master of your own personal finance, then know that you aren’t alone. As it stands, the amount of debt that each Canadian owes is slowly creeping higher than it has been in the past. A March 2019 report from Statistics Canada states that the growth in debt for Canadians has slightly outpaced the speed of income growth. In short, there is about $1.78 in debt for every dollar of disposable household income.
This trend is a symptom of a larger problem in the current economy. Debt is becoming the norm and financial stress is growing. Anything can happen that could set someone back with handling their bills. For single parent families, having only one income comes with its own set of unique challenges and hurdles.
When You Need Some Extra Help
Single parents who live with debt and who struggle to keep up with their debt have to be strong when it comes to their emotions, mental health, as well as their finances. When things are tight financially, you may have wondered where to turn when you need cash fast in order to solve an unexpected problem.
Online payday loans provide those who need help bridging the gap between paycheques with a valuable service. A broken-down car, an extra hospital bill, or an unexpected surge in an energy bill are just some of life’s many curveballs that can be hard to handle when already trying to get out from under debt. Payday lenders understand the need for extra cash and can provide single parents with some relief as they work to balance out their debt.
Long-term planning is an essential component of the single parent’s journey out of debt. Sometimes it’s hard to find help, so setting up a system where you know where you can go to for help and advice is a must. Keep reading for some tips on how single moms and dads can work on their debt and plan for a debt-free future.
Claim Benefits and Support
Are you making the most of the deductibles and social assistance programs that you are entitled to? The Canada Child Benefit, for example, offers simple, tax-free, and generous support to families who need it. You should also be aware of things like applicable tax deductions that can also offer some support for those who need it.
Negotiate Credit Rates
Did you know that you can call your current credit card company and simply ask them to lower your credit card interest rate? Start out by doing some research about other similar cards and compare the credit rates with your card. Then call the company and mention how you like the product and want to continue using it, but you need a better rate. You’d be surprised by how significant that change can be.
Compartmentalize Your Income
As a single parent, you are working hard to make you dollar go as far as it can. But do you think there’s room in your life to pick up an extra job? Depending on your skillset, you could find remote part-time work that has a flexible schedule that works for you.
Put the money from your side job directly to your debt, and think of your earnings as going towards certain parts of your life. Then, as you pay off loans, you’ll have an extra income stream that you can put towards savings, a home, or vacation. There are many ways to recover from debt, these are just a few. However, one you commit to the process, you’ve already taken the first step to improving your financial, personal, and family life.