As a single mother, you have to wear all the hats and juggle multiple roles. This is challenging enough, but if you are suddenly saddled with debt, this can be overwhelming.
A good credit score can help you buy a home, go back to school, or buy a car, etc, as well as provide and care for your family. Here are some steps that will help raise your credit score and avoid bankruptcy.
1. Learn the Lingo
This may take some research time at first to understand how your credit score works and what all the reports are about, but it is crucial to understand your starting point.
Once you understand what your credit score is and what it means, you can move on to actually fixing it.
2. Check Credit Reports Regularly
By checking your credit report regularly you will catch mistakes before they get too bad to fix. Once you see a mistake you can take quick action to dispute and correct it before it makes a huge dent in your score.
If you can afford to, it may be a good idea to use a credit monitoring service as that can free up some of your time and energy.
It may take 3-6 months of hard work to see a shift in your score, but it is worth the effort.
3. Pay Your Bills On Time
If you can stay on top of your payments this will put you in good standing with your credit issuer. You may be able to negotiate a smaller payment plan after they know your budget and you can commit to consistent payments.
4. Budget
Creating, and sticking to a budget will make it possible to pay your bills on time every month. This may mean cutting back on a few luxuries and wants temporarily. Be creative as you look for ways to free up more money in your budget.
5. Accept Assistance
Sometimes, it’s just not possible to make ends meet without some help. If you’ve cut back on spending, reduced your payments, stuck to a budget, and you still can’t afford the necessities, then do some research of what assistance programs are available to you. Programs like reduced school lunch, food stamps, Medicaid, energy assistance and housing assistance might be able to get you through this rough time.
Here are some resources to explore:
- The U.S. Department of Housing and Urban Development (HUD), information on assisted housing applications and income limits.
- The Low-Income Home Energy Assistance Program can help to reduce utility bill costs.
- Your local Department of Human services (DHS)
- Temporary Assistance for Needy Families (TANF), helps supplement family income
For more budgeting and credit repair resources, visit our tips and tricks page.
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