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Discover how busy moms creatively tackle debt! Read on for a few strategies to help you achieve financial freedom. [[{“value”:”
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For many moms, juggling child-rearing, work, and household management is tough enough without the added burden of debt. Yet debt is a reality for many. In fact, in 2023, the typical American held $21,800 in personal debt, not including mortgage loans. Here, we explore innovative strategies some busy moms have used to manage and eliminate their debt, proving that a little creativity and determination can go a long way toward managing your personal finances.
1. Take on a side hustle
Chris Roy, who was once burdened by a whopping $30,000 in credit card debt, found herself reassessing her finances following a health scare. Realizing the precarious nature of her situation, Roy took action by engaging in family-friendly side hustles like evening and weekend daycare, yard work, and gardening, where her kids could tag along. This proactive approach not only brought in extra income but also involved her family in her financial journey, reinforcing valuable lessons about money.
2. Use a 0% interest balance transfer credit card
Credit card debt is daunting due to high interest rates, but savvy moms can turn these financial tools to their advantage. Moms like Darcy Zalewski, who had $20,000 worth of debt, used 0% APR balance transfer cards to pay it off. Balance transfer credit cards allow debt to be moved over from a high-interest card to one with no interest, and the interest-free period can last a year or longer. Using this strategy can save you significant money on credit card interest, making it easier to pay down the principal balance faster.
3. Simplify your bank accounts
Simplifying your finances can lead to significant savings. Zalewski, for instance, streamlined her bank accounts to just one checking and one savings account and set up auto-scheduled payments to her credit cards to avoid late fees. This straightforward approach made it easier to keep track of her funds and reduced the risk of missing a payment.
By consolidating her accounts, she could better monitor her spending and savings, making financial planning much more manageable. Automating her payments meant she never had to worry about incurring extra charges due to forgetfulness or mismanagement. Simplifying your banking this way can streamline your financial life, making it less stressful and more efficient.
4. Use cash for spending
Adopting a strict budget and cutting out new debt were other key strategies for Zalewski. By using cash for transactions, she avoided the temptation to overspend. Saying no to costly social outings and explaining budgetary constraints as a lifestyle choice rather than a temporary state (“That’s not in my budget” vs. “I’m broke”) also helped her stay on track financially.
5. Try the debt snowball method
Both Chris Roy and Dyana King, who tackled $34,907 in debt, employed debt reduction strategies that involved paying off smaller balances first to quickly reduce the number of creditors owed money. This is known as the debt snowball method. This psychological win provided the motivation needed to continue the challenging journey of debt reduction. King also emphasizes the importance of patience and consistency, recognizing that escaping debt is a marathon, not a sprint.
6. Use social media for support and accountability
King also tapped into the power of social media to connect with others in similar situations and to maintain accountability. By sharing her journey online, she not only received support but also provided inspiration to other moms facing similar challenges. Her platform (called Money. Boss. Mama) has become a resource for single mothers seeking to take control of their financial futures.
7. Shop around for the best rates
Zalewski really took charge of her finances by getting into the nitty-gritty of her monthly expenses. She reviewed and shopped around for services like insurance and cellphone plans, thereby ensuring she was getting the best deals, further reducing her expenses. It wasn’t just about pinching pennies — it was about making smart, informed choices that really aligned with her financial goals.
This savvy approach helped her cut down on costs significantly, boosting her savings and giving her that extra peace of mind. It’s like she turned budgeting into a superpower, giving her the financial flexibility to plan for a brighter, more secure future.
Getting out of debt is no easy feat, but as these incredible moms have shown, it’s definitely doable with some smart tactics and solid backup. Whether it’s getting savvy with financial tools, trimming down daily expenses, or leaning on a supportive community, everyone’s path to wiping out debt is unique but equally motivating. Every little step forward not only brings a sigh of relief but also sets a strong example for our kids. It’s all about moving closer to that sweet spot of financial freedom, one day at a time.
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