How to Manage Debt as a Single Mom: Tips and Strategies to Improve Your Financial Situation

As a single mom, you are already working a full-time job plus more to provide for your family. The Welch’s company discovered that in 2018, working moms spent an average of 98 hours a week working, the same as working two and a half full-time jobs. When the other parent is not supportive, it can be tough to stay out of poverty.

I experienced financial hardship once I got separated and received no support while caring for my three kids as a full-time graduate student. After being financially secure for years, I became broke, lived off food stamps for almost a year, and accumulated debts from graduate school and credit cards.

However, it took drastic behavioral changes to reverse that curve, manage debts and stabilize our finances. In this post, I share tips and strategies that helped me manage my debt as a single mom.

1. Create a budget: Create a budget to track your expenses and income and prioritize debts to pay off first. Do not overthink it like I did initially – I ended up just creating my own template using google sheets. There are free budgeting templates for people on a tight budget. But there are several free budget templates and apps like NerdWallet, Canva, and Mint, you can customize yours using resources on consumer.gov.  I struggled with this because it is a surefire way to get sad on a daily basis as you juggle expenses and have to make really tough calls, to the disappointment of your kids. I managed this by being honest with them about our situation and that changed everything. Don’t create a false impression with your kids, especially if they are older.
2. Cut expenses: One way to free up money to pay off debt is to cut expenses. This article by CapitalOne has really helpful and specific recommendations on how to reduce expenses. Look for ways to reduce your monthly bills, such as canceling subscriptions or negotiating lower rates for services like cable or internet. My kids work hard at school and sports, so I wanted to be able to afford occasional local vacations to the beach and fun parks. So, I decided to cut out dine-out options, had a strict weekly grocery budget, and for a one-two year, my kids wore hand-down clothes from family and friends. No big deal!
3. Seek debt relief: If you’re struggling with debt, consider seeking debt relief options such as debt consolidation or debt settlement. Debt relief can help you pay off your debt faster and more efficiently. There are several programs out there. Check your state resources. My rule of thumb is not to pay upfront or at all – it looks counterproductive to incur costs while trying to reduce expenses. Look into the program offered by the National Debt Relief program and see if it works for you – they are not a government agency.
4. Increasing your income is another effective way to manage debt. Consider taking on a part-time job or starting a side hustle to earn extra money. You can also explore opportunities to boost your income through education or training programs. In my case, I worked as an admin/research assistant for a professor at another local state university and did some freelance program evaluations. When things got tough, I even interviewed for a night shift job at the closest FedEx, but unfortunately, I didn’t get hired. However, there are now plenty of ways to make money from the comfort of your own home while taking care of your kids. With so many ideas available online, it’s worth checking out YouTube and using these Google search prompts to get started:
   • • • • • Best side hustles for single parents.
           • Work-from-home jobs for single parents.
           • Flexible jobs for single parents with kids.
           • Online jobs for single parents with no experience.
           • Part-time jobs for single parents with full-time commitments.
           • Freelance jobs for single parents with creative skills.
           • Small business ideas for single parents on a budget.
           • Remote jobs for single parents with special needs children.
           • Passive income ideas for single parents with limited time.
           • Entrepreneurial opportunities for single parents looking for financial independence.
5. Prioritize debt payments: Make sure to prioritize your debt payments. Focus on paying off high-interest debts first, such as credit cards, and then move on to lower-interest debts. This will help you save money on interest charges and pay off your debt more quickly. And once you do, cut up that card, please!
6. Seek financial advice: If you’re struggling with debt, consider seeking financial advice from a professional. They can provide you with guidance and strategies for managing your debt and improving your financial situation. There are also free services – explore the options first. If you are in a university community, there’s an abundance of resources there. Many government agencies offer free financial advice and resources to the public. For instance, the Consumer Financial Protection Bureau provides free financial education resources. Some financial advisors and planners offer free initial consultations to potential clients. This can be a good way to get personalized financial advice without having to pay for a full-service financial plan. There are many free online resources available that provide financial advice and guidance, such as personal finance blogs, podcasts, and forums. Some popular websites that offer free financial advice include NerdWallet, The Penny Hoarder, and Dave Ramsey. There are many nonprofit organizations that provide free financial advice and counseling services to people who are struggling with debt or financial issues.

Being a single mom is challenging, but managing debt can make it even harder. By creating a budget, cutting expenses, seeking debt relief, increasing your income, prioritizing debt payments, and seeking financial advice, you can effectively manage your debt and improve your financial situation. Remember, it takes time and patience, but with the right strategies, you can successfully manage your debt as a single mom. All the best superhumans!