Time and again we have come across situations that demonstrate how insecure work opportunities and low incomes are making many individuals vulnerable to debts. Moreover, these issues are very much present in case of single parents. Parents are perpetually under the heavy pressure of fetching the adequate amount of money for raising kids. If single parents do not have any savings for emergency situations. They would be totally vulnerable to unanticipated bills and income shocks.

All these could lead to severe consequences. Modern day parents are often compelled to take out a debt consolidation loan to combine multiple outstanding loans into one current loan with just one monthly payment with a definitely low interest. This would help them get out of debt quickly within 3 to maximum 5 years.

You need not hide your financial situation from your children but at the same time. Remember this could be a pretty sensitive issue for discussing with them. Do not talk about your debts and debt consolidation loan in a distressed tone. Avoid talking in a stressful and emotional manner. You must understand how best to introduce the topic of debts. You could gain sound debt knowledge if you browse through debt relief sites thoroughly.

Things to Avoid for Effective Debt Consolidation

  • Asking your kids to take the calls when collection agencies or creditors themselves call to remind and threaten you about your missed payments.
  • Encouraging and instructing kids not to disclose about family‚Äôs money issues.
  • Using your young child in a tussle with your spouse regarding money.
  • Asking teenagers and younger kids to borrow money.
  • Telling your children to take important financial decisions for you.

Things to Do

  • No need to share all the details with your kids. Discuss issues to the extent you think you should with your kids depending on precise circumstances. Avoid the slightest details. It is enough for them to know that you have taken out a debt consolidation loan and so you need to modify your lifestyle a bit and stop splurging money.
  • You need to encourage them to save money and educate them about the advantages of saving money so that you could tackle emergency situations. Children must not be told about your exact financial status and no need to tell them how much money you have.
  • Keep your cool & reassure your children. They must not feel insecure. Before talking to your kids directly about the debt consolidation loan. Get rid of all words that could be provoking anger, fear, and insecurity. Let them know about the current scenario.
  • If you aren’t comfortable discussing finances with your children, or if you feel like they are experiencing anxiety because of this, you should consult a licensed therapist or mental health professional, who has dealt with children before and will be able to help them through this rough patch.


You should do your bit as well to encourage kids to communicate openly, maintain journals, and get requisite amounts of sleep, exercise, and nutrition. Keep them as removed from stressful situations as you can; children deserve to grow in sheltered environments that are conducive to healthy childhoods. You would not want your kids to be puzzled.