Early in our marriage, my wife worked at a bank with a single mom who became a dear friend of ours. Margaret was a great example to us! On her lunch break, she would walk 12 flights of stairs; she considered that a part of her daily exercise needs. She worked hard to avoid debt. She lived frugally, packing a small lunch, and allowing herself 10 chocolate chips for a dessert. By handling money wisely, she gained an education, bought a home, put her daughter through school, and eventually married.
Break Free of Debt
Too many single moms have come to depend upon debt to fund their basic needs. But it does not have to be that way. Debt is costly. It hinders saving and investing because it prevents margin in your budget. It can become a cycle of dependence until you experience the freedom of living out from under the weight of it.
To eliminate debt, you have to set a goal to pay it off, live on a realistic budget, maximize your income, and spend wisely.
Maximize Income
Review your payroll withholding and make adjustments to ensure you are not receiving a tax refund each year. That is money you can use each month.
Are you a single mom or know a single mom who needs help with parenting, finances, health, or spiritual and emotional wellness? SMU offers 100+ online, self-paced courses to help her get back on her feet and encourage her to be the best mom she can be. Get enrolled in Single Mom University today!
- Work an extra job or start a side gig.
- Pursue a raise or extra hours in your current job.
- Apply additional income to giving, saving, and paying down debt.
- Reduce smaller expenses like subscriptions, entertainment, and miscellaneous spending.
Spend Wisely
- Avoid new debt.
- Go to a cash-only basis for consumer spending.
- Avoid stores and limit social media.
- Pray for self-control and learn to say, “No.”
Debt Elimination Methods
Snowball
This method works by paying off the smallest bill first. Organize all debts from smallest to largest amounts. Focus on paying off the smallest debt first while continuing to make minimum payments on the others. Apply extra money towards it and once it’s paid off, roll over that payment to your second debt and tackle it like you did the first. You will gradually have more money to apply each month as you eliminate debt along the way.
This method motivates by reducing the number of debts quickly. By starting with the smallest one, the hope is that you’ll be able to pay it off quickly and gain encouragement to eliminate the next.
Avalanche
This method works by paying debts according to their interest rate. Organize them from highest interest rate to lowest and attack the highest one first. Like the snowball method, continue making minimum payments on all other debt and rollover what you were putting towards the first debt towards the next until you eliminate them all. This method saves money in the long run because you eliminate months of high-interest charges. It takes self-discipline to stay motivated because entire debts may not be eliminated as quickly.
Reward Your Progress
Set a reward or celebration for you and your family once you become debt-free. The reward should be very motivating and exciting for you.
- Check your goals and post visuals for added incentives.
- Recruit someone to hold you accountable.
- Model frugality with joy.
Get Professional Help
It is possible to negotiate with your lenders for better rates. Consider consolidating credit cards with one low or zero-interest card. Make sure you check all terms and read the fine print. If you don’t feel qualified to do this yourself, ask for professional help.
Christian Credit Counselors (800-557-1985) specialize in helping people get out of credit card debt and on the road to financial freedom. They offer credit counseling services to those with an income and $3,000 or more in credit card debt. They help people pay their debt faster by lowering interest rates by up to 75%.
Invite God to Help You
Pray for guidance and ask for wisdom. Proverbs tells us that when we are in debt, we live as slaves to our creditors. Not only does God intend for us to live in freedom, but He also wants to use us more fully for His Kingdom.
Trusting God through the payback period reinforces your relationship with our true Provider. A lifestyle free of debt is not one of deprivation but a reward for thoughtful living. This is possible, no matter your starting point or challenges right now. Each step of the way to becoming debt-free, remember I Corinthians 1:9, which says, “God is faithful, who has called you into fellowship with his Son, Jesus Christ our Lord” (NIV).
Need financial assistance? Make sure you check out our National Resource Guide to find support. Please note that The Life of a Single Mom is not directly affiliated with any of the organizations listed on this guide and assistance/funding is not guaranteed.
Chuck Bentley is CEO of Crown Financial Ministries, the largest Christian financial ministry in the world, founded by the late Larry Burkett. He is the host of two daily radio broadcasts, The Crown Money Minute and My MoneyLife, featured on more than 1,000 Christian music and talk stations in the U.S., and author of his most recent book Money Problems, Marriage Solutions.
He also serves on the board of Foundations for Farming in Zimbabwe, an initiative dedicated to helping the ultra-poor learn to flourish using local resources and Commonwealth, an impact investing foundation dedicated to improving communities.
Chuck is the founder and executive director of the Christian Economic Forum, a global network of high achievers dedicated to advancing God-inspired solutions to the world’s greatest challenges. For more info, visit his website HERE.
The Life of a Single Mom is a national, faith-based, nonprofit that exists to see that no single mom walks alone. To date, the organization has worked with hundreds of churches to start a single mom’s support group in cities throughout the U.S. and beyond, as well as having served hundreds of thousands of single mothers with a variety of programs. Offering a large array of books, curriculum, training materials, online instructional videos, podcasts, newsletters, life skills education, and more, TLSM is one of the largest single mom organizations in the U.S. The robust selection of single mom programs focus on empowering single moms to grow spiritually, emotionally, financially, and parentally through Single Mom University, Single Moms Across America, the National TLSM Single Moms Conference, boot camps, and a variety of other programs. For more information, visit www.thelifeofasinglemom.com.
