Let’s face it: women are smarter than men, when it comes to patience and how to get out of debt. A number of women are there who have mastered the art of financial management and have successfully accomplished the task of getting out of debts. However, still a number of fairer sexes are found crumbling under insoluble debts, due to single parenthood, sudden widowhood or poor money management skills. Finance expert Suze Orman believes that the greatest mistake that women often commit is they become blindly dependent on the significant male figures in their lives regarding financial matters. It not only makes them vulnerable both emotionally and financially, but also exposes them to greater risk of bankruptcy. Read ahead, to know how women can get back the control of their financial life and attain debt relief with a few smarter choices.
You must know that financial planning is no more regarded a male-dominant sector. The simple mantra, ‘live within your means’ could be followed by anyone irrespective of their gender. You must realize the fact that there are certain limits to your financial resources, before things get dicey. Make sure you avoid credit and use cash whenever, you can afford. In case you use a credit card, only charge the amount that you can afford to pay back in full. It may not be easy to spend less, but make an effort that you avoid impulse purchasing as much as possible.
Get a realistic picture of your current financial situation and set some achievable financial goals for yourself. Financial goals must include a proper budget planning, saving for emergency fund and retirement account. If you are married, don’t overlook your family’s financial decisions, because you are just as liable for the family’s debts as is your husband. Once you grasp your financial situation well, make a list of debts and corresponding monthly payments, along with the interest rates you pay for each of them. Prioritize your debts on the basis of due dates, balance and interest rates. The debts with high interest should be paid first. Once you calculate the cash inflow and outflow of the family and check what should be your immediate priority whether to repay your credit card debt, make more investments, finance your children’s education or build your savings, begin the crucial task debt elimination.
Develop a financial strategy
Paying off your entire debt might take you years but remember, every step you take brings you a step closer to your financial goals. You can adopt several debt relief options, like debt consolidation or debt settlement. If you are juggling with multiple debts, you can consolidate your existing debts and can pay them through single payment gateway at a lower interest rate.
Credit card debt
Make sure before you opt for a new credit card, you understand the terms and conditions of the contract well. It’s also important for every woman to establish a separate credit history of their own, because if they end up being divorced or widowed in future they have to manage all financial responsibilities singlehandedly. Go slow in taking on credit cards and limit yourself to just two or three credit cards. Make a special note that you pay your bills on time and keep your credit card balances low.
While submerging in the pool of debts, saving seems to be out of question, but you must know its holds enormous importance in your future life, you must contribute 10 percent of your family income to an emergency fund or a retirement fund to ensure the future security of your family. To save more, you can curtail on entertainment cost or start doing some of the odd household jobs like gardening or cooking or baby sitting as well. However while cost cutting, make sure you are not compromising with your children’s education, treatment or adequate entertainment.
Keep the aforementioned points in mind and secure your financial future in the best possible way.