After a divorce, it can be difficult to get a handle on your finances. Recently single parents often see an increase in debt as a result of this new and unknown financial situation. Maybe alimony hasn’t kicked in or your former spouse isn’t paying child support as required. This can force you to take on more expenses than you are actually able to cover. Bankruptcy can be a great solution for single parents dealing with both marital and post-martial debt.
How Bankruptcy Can Help Single Parents – The Debt Relief You Are Looking For
Because Colorado is an equitable division state, is it not uncommon for each party to take some of the debt accrued throughout the marriage. This, combined with the new need to manage and figure out your finances moving forward, can cause someone to take on more debt than anticipated. Being a single income household can be difficult, especially if you have debt you are carrying from your marriage. Bankruptcy can help give you the fresh start you truly need. You can wipe the slate clean and move forward on a new page with better budgeting and money management skills to help you make the right financial decisions moving forward.
Tips for Single Parents – What You Can Do to Minimize the Financial Impacts of Single Parenthood
Here are some financial tips for newly single parents:
Monitor your spending – you may have to cut down on luxuries or non-essentials with your new situations. While this is not fun, it can absolutely save you in the long run. You have to be able to tell you kids no when it comes to unnecessary spending.
Life Insurance – it’s important to have a good life insurance policy to protect your family from serious financial troubles should something happen to you. Check out rates for extended coverage, because sometimes the coverage offered through your employer is just not enough.
Health Insurance – just like with life insurance, it’s equally important to have health insurance for you and your kids. This will protect your from serious and unexpected expenses when a health issue arises. Medical debt can serious derail a financial situation.
Savings – it’s so important to have a rainy day fund or savings for an emergency. When something comes up with your car or home, you don’t want to get stuck with a lot of debt because you don’t have any savings to draw from.