Did you recently come to know that a little one inside you begins to grow during your pregnancy? After a few months, you will be a mother!
Well, the news indeed brings you a world of happiness. But, it can create a mixed feeling of joy and anxiety in you.
Getting warm wishes from your loved ones for the upcoming baby is extremely joyous. On the other hand, the other realities, which are associated with pregnancy can make you feel overwhelmed.
Though it is true that parenthood is a priceless gift, yet the cost associated with the entire phenomenon can make you worried; especially if you are already dealing with your current debts.
The worry is normal as the debts are super stressful and your finances are going to stretch to cover the cost of pregnancy.
But, try not to take much stress; it can create an adverse effect on your health.
There are always some ways available that can help you to deal the debt trouble during the pregnancy.
Here you go:
Talk to your partner and share your feelings
So, you are in debt on maternity and you want to get out of debt as soon as possible. You should share the debt payoff plan with your partner. Sit with him and have a detailed analysis regarding the debt payoff goal, unpaid maternity leave, and the upcoming cost associated the baby. Remember, many things will be changed soon you become a mother. One of you will have to stay at home for a certain time. Once you clear out the whole scenario with your partner, you can release yourself from some stress immediately.
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Make a solid plan
Well, instead of losing sleep at night for those pesky credit card balances, you should make a plan. Remember, you have 9 long months to get financially prepared for the upcoming baby. Right now you should attack your debts to get rid of them. Take the initiative by analyzing your debts. You should choose the right debt repayment strategy to get out of it. If you have multiple debts including credit card debts, car loans, mortgage or student loan, then you may have to plan accordingly.
Make changes in your budget
To get started for debt payments, you should make changes in your budget. Cut down unnecessary expenses to tighten the budget. Take a close look in your budget and decide which expense you can eliminate. It will help you to set aside some money so that you can put the money toward debt payments. Make sure your budget allows for debt payments after all of your necessities are met.
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Calculate how much you need to pay to creditors
The first step to pay back your outstanding credit card bills is to calculate how much you actually owe to your creditors. To work out the figures, create a list of your credit card debts by writing down the name of the creditors, interest rates on each bill and how much you owe on each of them. This will help you get a clear idea and in turn, motivate you to pay off debt, as fast as you can.
Negotiate with creditors for alternative payment plans
You should try to reduce credit card debt so that you can get rid of them fast. You can pay off your credit card debts fast if the interest rates get reduced to a certain extent. So, if you think that the interest rates on your credit card debts are quite high, then you can negotiate with your creditors to lower it down. They may be willing to work out on a suitable repayment plan if you show your willingness to repay the bills in full.
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Choose the right debt repayment plan
You need to choose a debt repayment plan to repay your credit card bills.
For example, you can choose debt snowball or debt avalanche to pay off your credit card debts on your own without any professional help.
If you think that you will be motivated by clearing some of your debts at first, then you can choose the debt snowball method.
In this method, you need to prioritize your debt payments from the smallest balance to the highest one.
However, if you want to repay your highest interest debt first, then choosing the debt avalanche method should be your preferred option. Prioritizing your debt payments in terms of highest interest rates may help you save more in the long run.
Seek professional debt relief service
If you don’t want to pay off your debts on your own, then you can go for professional debt relief services to get out of those credit card debts fast. The debt counselor will help you in selecting the right debt relief method like debt management, debt settlement or debt consolidation depending on your financial condition.
Deal with your student loan debt wisely
If you have federal student loan debt, then you have to choose the repayment plan provided by the federal government.
However, under the federal government’s Repayment Assistance Plan, you can reduce the size of your student loan debt and monthly payments depending on some criteria.
If you have multiple private student loan debts, then go for debt consolidation. It is a wise idea to simplify the monthly debt payments. You just have to make the monthly payments on your new consolidation loan.
Get some big wins
Whether you want to make debt payments or save for the upcoming expenses of pregnancy, some extra money is always like the cherry on top.
So you should try to get some free cash.
- Contact your cable person to negotiate the cable bill. If you don’t get a reduced price, you can even cut down the cable completely.
- Get a low-cost cell phone plan to save money.
- You can sell the extra car that you rarely use. If you have car loan debt, then you can sell that extra car to repay the loan.
- If your house is big, then rent a portion to earn some pretty good extra amount every month.
Put the extra money toward your debt to get out of it as soon as possible.
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Build up an emergency fund
Unexpected incidents sometimes create havoc in your finances. It requires an emergency fund in place to face these unintended contingencies. Make it a binding habit that you keep some minimum amount in the emergency fund. The emergency fund serves as a much-needed cushion to your finances. Making some minimum contribution to the emergency fund each and every month can help you in the near future.
Work from home during your maternity
Pregnancy is not a disease, you can continue your work from home if your employer gives you that facility. You can even try to earn some extra money during your maternity leave. Search on the Internet to get some part-time work ideas. One of the popular job opportunities is freelance blogging. If you have a flair in writing, you can start doing it till the 9 months of pregnancy. After the arrival of the baby, you can even continue the work from home.
Well, make sure you eat well, sleep enough so that your baby grows healthy in you.
Lastly, remember planning is the key.
Try to get out of the credit card debts first to avoid losing money on interest. Don’t forget to make the minimum monthly payments on other debts like student loan or mortgage (if any). If you can’t afford to pay off all your debts, it’s okay. There is nothing wrong in having a baby while in debt. The debt payoff journey can be longer. So, have patience. Try to live within your means to build a savings cushion. Remember, the cost will be increased soon; be financially prepared for that. Besides, get a good life insurance policy to secure your family. Try to automate all the payments to avoid miss payment hassle.
Share your feelings with your partner or dear ones to feel relaxed.
Remember, within a few months, you will get the bundle of joy in the form of your baby. You will find the best time in your life and certainly, you will understand that you have made the best decision ever with or without your pile of debts.
About the Author: Mia Jones has a keen interest in blogging. After completing the graduation, she has started establishing her identity by contributing articles on various platforms. She has already started ghostwriting/guest writing on various blogs and websites. Apart from writing, she loves cooking and also has a great passion in various DIY projects related to arts & crafts, gardening etc. You can mail her at firstname.lastname@example.org.