None of us could have been prepared for the coronavirus and Covid-19 pandemic. This has truly been a completely unprecedented period in human history and has taken us all by surprise over the past few months. Back in January, we were planning our year as we usually do. We were carrying out our day to day routines. We were commuting, working, heading to the gym, meeting friends and family, planning days out, booking holidays and breaks, buying gig and festival tickets and generally getting ready to start this decade off on the best foot. But by March, we were all becoming aware that 2020 wasn’t going to pan out how we’d planned.
The past six months have seen governments around the world issue stay at home orders to all but essential workers to slow the rapid spread of coronavirus. These lockdown situations have had a huge impact on countless aspects of many of our lives. But one of the most urgent has been the impact that it has had on our finances. Many countries around the world are experiencing economic difficulties and are entering recession. Countless businesses have gone under. Countless people have lost their jobs, found themselves out of work, on a reduced income, or otherwise struggling. It’s not all too surprising that many of us are experiencing financial difficulty right now.
Here are a few pieces of advice that should be able to help you if you are experiencing debt as a result of this pandemic.
Find Out What You’re Entitled To
Everyone is aware of the difficult situation that many of us are facing right now. This includes governments around the world. Many are attempting to help their citizens with various schemes. This has ranged from stimulus checks to furloughed employees to grants for the self-employed. Make sure to make the effort to see what you are entitled to on this front. Claim for anything that you are entitled to. These schemes are designed to help, so make the most of them!
Many lenders are being lenient during these times, given worldwide circumstances. Make sure to call any lenders up and explain your situation to them. If you have lost work through coronavirus, they may be willing to put a hold on payments or at least remove interest or late payment charges from them!
Determine How Much Debt You Have
People tend to try to bury their head in the sand when facing debt. But this really isn’t helpful. Instead, you need to focus on a Debt to Success System that will help you to turn your finances around and break free of the ties of owing money. It may feel easier to simply ignore your debts, but they won’t simply go away. Instead, they will get worse, with added charges and fines, or even court judgements or repossession being taken out against you. Instead, face up to the issue. Start by determining exactly how much debt you have. Once you have a total, you have a goal to work towards.
Consolidate Your Debts
If you have a number of debts, it can be difficult to keep on top of payments. This can result in you making late payments, worsening your credit score and receiving further fines to pay off. Instead, you can consolidate all of your debts in one place, so you have one set payment coming out each month. This will make it much easier to manage and organize your debts and avoid the issues outlined above! Just make sure to find a loan or credit card with a low-interest rate to transfer your debts onto. This will minimise the amount that you have to pay back in the long run!
If you’re in a really bad debt situation and can’t keep on top of payments, you may need to seek further financial help. Advice on bankruptcy could prove extremely useful. While this may not be the ideal solution, sometimes it will be a last resort. It’s worth getting proper, legal advice and professional financial advice on this issue to guarantee that it’s the best route for you to go down before getting started.
Sure, we’re going through difficult times. Things can feel really hard right now. But we will pull through it! Hopefully, some of the above information will help to keep you on the right track when it comes to managing your finances and dealing with debt right now!