How Debt Management Plans Can Help
For many first time mothers, dealing with financial difficulties following the birth of their first child is going to happen. Being prepared for the worst is something which can be beneficial in the long term.
Having a child is not cheap. The first year alone is estimated to cost new parents upwards of £5,000, which is often the result of racking up big balances on credit cards and overdrafts. It can be difficult to even stop to think of the consequences of spending when simple items such as cots, prams, nappies, and formula are absolute necessities. For most new mothers surviving on maternity payments and a spouse’s income, debt is unfortunately inevitable.
Dealing with debt repayments, crunching numbers and dealing with finances, in general, is difficult with little sleep and a screaming child. Before you know it, credit cards are maxed and you are left worrying how you got into so much debt. Rather than burying your head in the sand, which seems the easiest option, acting as early as you can may save you a lot of stress further down the line.
Debt Management Plans
The first step should involve considering your options, such as consulting Debt Management Companies for assistance in approaching creditors.
A Debt Management Plan (DMP) can help those in debt reduce payments on unsecured credit, giving them more time to pay back loans and credit cards. A DMP is not the same as Bankruptcy or an Individual Voluntary Arrangement (IVA) in the sense that there is no legally binding agreement required. A DMP is simply an agreement between you and your creditors to reduce payments down to what is line what you can afford.
Many find great success in using debt management services in the UK, especially given that many services are available free of charge. Assistance with things such as cutting out unnecessary expenditure and priority debts can give you a greater picture of how to tackle the debt which has racked up, bringing further stress at a time which should be naturally cherished. With many of the big challenges out of the way, some much-needed positivity can really lift the spirit.
Staying on top of things which are likely to affect your finances is also something which is advisable. For example, using a Budget Calculator to help you work out entitlements and how a return to work will affect your household income may make a plan of action much easier to execute. With the future almost always impossible to predict, the more information you have means the better you are prepared for bouncing back from issues with debt.
While breastfeeding, surviving with next to no sleep, laundry, preparing meals and keeping the house clean is reason enough to make anyone ignore debt, it is absolutely the worst thing to do. Find the time to reach out and look for help and you will be surprised at just how much in terms of resources is out there.
Asking for help doesn’t make you weak. More often than not, it simply makes sense.