5 Financial Traps to Avoid
When you are trying to regain financial health as a single parent, there are some traps that could easily sabotage your efforts. Here are five traps to avoid if you want to maintain a healthy financial status:
- Expensive Credit – Desperate times call for desperate measures, but don't let your financial desperation lead you down the path to expensive credit. Single mothers who are having trouble making ends meet often fall prey to doorstep lenders who offer quick fixes to their financial woes. However, these loans usually come at a steep price that will only serve to get you in more trouble in the long run. Avoid them at all costs.
- Using Credit as Income – When you begin using credit to pay your living expenses, the balance mounts very quickly. Never use credit to pay for utilities, rent or groceries if you can help it. Instead, look for assistance in one of the many programs listed above or get help from a debt management company.
- No Bank Account – Establishing a bank account with a direct debit option is an easy way to manage your finances and get breaks on some of your financial obligations. Many companies offer discounts to customers who use a debit card for payment.
- Intimidating Debt Collectors – A debt collector makes his money rounding up outstanding balances for his clients, and he will often use any means necessary to achieve his goal. If collectors are beginning to harass you for payment, it is time to seek help from an insolvency agency that will help you get out of debt safely and affordably.
- Declaring Bankruptcy – Many single parents are so overwhelmed with debt they simply want to declare bankruptcy and start fresh once again. However, bankruptcy should only be used as a last resort after other means of debt management have been explored. Talk to an insolvency expert about your options before resorting to a bankruptcy declaration.
Article provided by: Iva.net
Information about IVA: IVA stands for Individual Voluntary Arrangement. It is a legal and government approved method of resolving debt that avoids the consequences of bankruptcy. If you owe over £15,000 to three or more creditors and can't afford to meet the repayments then you may be eligible for an IVA.
| Advertisement: | ||
|---|---|---|
 |
 |
 |
 |
|
 |
