Becoming a stay-at-home can bring pride and a sense of self-fulfillment. However, with time you might fall into debt when you’re living off on only one paycheck or none, and you don’t always want to depend on your husband. How can you pay off debt as a stay-at-home mom?
In this article, I’ll be walking you through how you can pay off debt as a stay-at-home mom, stick with me.
Read This Next: How to Create Online Courses and Make Money While Sleeping
How to pay off debt as a stay-at-home mom
When getting out of debt is a top goal, there are several things you can do to pay off your debt ultimately — or at least the majority of it — in 12 months or less. Here are a few tips and techniques to help you get started on your debt-free journey:
Use your savings
Don’t be hesitant to use some of your savings to pay off loans with high-interest rates. Using cash reserves to pay off debt is a wise move since it prevents interest from accruing on significant balances.
Although having some extra cash in your bank account may feel comforting, the truth is that the money isn’t working for you – especially with today’s record-low interest rates. Don’t spend all of your savings. If you have a large sum of money, consider using some of it to pay off your debts.
Negotiate for a lower interest rate
Negotiate a reduced interest rate with your creditors. You’ll be astonished at how many creditors are prepared to lower your interest rate based on your payment history and current account status.
You may be in a much better position to qualify for a reduced interest rate if you have maintained a strong relationship for a few years. As you pay off that debt over the year, this can help you save money on interest payments.
Cashing in your life insurance
Cashing in your life insurance policy could be an excellent debt-reduction option because it allows you to pay off higher sums of debt more rapidly.
If you’re drowning in debt and don’t have any beneficiaries who would benefit from your life insurance policy — such as a spouse or children — it might be a good idea to use those funds to pay off debt.
If you have term life insurance coverage, this technique isn’t applicable. It only works if you have a complete life insurance policy with a cash value.
It’s also worth noting that, even if you have beneficiaries, you might be able to use some of the cash value of your whole life policy to pay off debt while still leaving some life insurance earnings to your loved ones.
Make more money
If you’re dead set on paying off your debt this year, look for ways to boost your income and utilise that extra cash to pay off your debt as rapidly as possible. Think of ways to start making extra money for at least a few months, whether it’s through taking on a part-time job or negotiating a raise with your boss. Make debt removal a top priority.
Sell off some items
Make a list of items you might be able to sell on eBay or to friends and relatives. You can quickly reduce your debt burden by raising extra income by selling stuff you no longer need or are willing to part with and utilising the money to pay off debt.
Do a credit card balance transfer
All of the credit card debt transfers sent to us are usually discarded. . A balance transfer, on the other hand, can help you go on a debt-reduction binge.
You may remove all credit-card interest by shifting high-interest debt to a zero-per cent contract that lasts about a year. This frees up cash flow, allowing you to pay off those credit card payments faster. Just make sure you read the tiny print before signing up to ensure you’re getting the advertised low rate.
Read This Next: 25 Superb Ways to Save Money for Moms on a Budget
Please keep in mind, Maama, that it’s not just about getting out of debt; it’s also about what you do afterward. Yes, you should get out of debt, but you should also continue to be frugal with your money. I encourage you to set different goals for yourself while going through the debt-free path.
Debt isn’t the be-all and end-all; constantly consider life outside of debt, as many don’t know how to spend money after that. It’s more challenging to save money than to pay off debt. That sounds insane, but it’s as if you’re saying, ‘It’s my money now. Why should I have to preserve it?’ Have a new goal planned for the day you are debt-free.
Remember that motherhood is a journey made easy when we have the right people in our corner.
Click here to go to the fantastic world of motherhood.
Subscribe to our telegram channel here.
Or join our telegram group here.
Or send me an email to join our Exclusive WhatsApp Family.
Keep being #fabulous.
I am rooting for you.