A survey by Baby Center has revealed that 68 percent of new parents had credit card debt when their baby was born. However, more than 50 percent of families think they should have their debt paid before they become pregnant. Paying down debt and pregnancy can be a difficult issue, but Creditcards.com recently tackled it offering advice to new parents.
First, you should begin to analyze your debt. If you are having a tough time paying the minimum amounts on your credit cards and living above your means, you may want to reconsider bringing a baby into the world right now. But if you have some money left in the bank each month and can make payments with no problem, you’re probably in pretty good shape.
Then crunch the numbers, says the article. Using a spreadsheet could help you take a look at the expenses that will be ahead of you after giving birth, such as diapers, formula, childcare etc. Next, overhaul your budget. Take a look at your spending and make adjustments like eating out less.
Do a test run, according to Creditcards.com. Set aside the money that you think you’ll need with a new baby and see if you can survive with a smaller income. Keep reminding yourself of the ultimate goal. Try putting any extra money that you may have into savings and work to pay off your debt.
Also, try lowering your expectations. The article reminds readers to think twice about buying the most expensive stroller or designer clothes. Like I mentioned in Part One of this blog there are many ways you can save money on baby items, such as shopping at resale clothing stores or buying pre-owned furniture.
If you are planning for a baby or just found out you’re pregnant, don’t waste another moment and take a look at your finances. You want to make sure you can provide a safe and secure life for your baby.