Are you experiencing financial difficulties during this Corona-virus period because of a job or source of income? The Corona-virus (COVID-19) pandemic affected the global economy and many people have lost their lives and livelihoods. For most individuals, it has become difficult to afford a meal a day, pay for rent and other utilities on time or even service an existing loan. Because of this, most people are now in distress even as the economy prepares to recover after lock-down.
In this post, we will share with you practical tips on how you can cope with financial stress and anxiety at this time of COVID-19 pandemic.
Let’s dive in!
1. Create A Workable Budget
You cannot be able to plan for your finances if you cannot determine your financial burden. Drafting a budget will come in handy as you will have a list of all your current debts and expenses. When you compare them with your new current income, you can be in a better position to determine which ones you need to prioritize based on their urgency.
You can track down which expenses are taking most of your current income and try to see whether you can make some adjustments during these tough times.
2. Get In Touch With Your Lenders If You Have A Loan
If you are servicing a debt, the best thing to do is to contact your lender and negotiate. It can be payments for your mortgage, credit card, insurance cover or an auto loan.
Once you engage your lender, you can negotiate for a mortgage payment holiday, interest on loans breaks or new flexible payment terms that match your current financial status.
3. Contact A Professional Credit Counselor
Not everyone can be able to make a solid budget and stick by it. If you are that kind of person, seek services from a credit counselor. There are many credit counselling agencies out there which advice individuals on how to manage their money and debts.
If you are in a financial crisis during this corona-virus pandemic period, a credit counselor will help you with ideas on how you can adjust your expenses. In addition, they can help you get access to various emergency hardship programs in your area that you can qualify for.
You can contact these organisations for free, confidential and impartial money guidance and debt advice.
4. Seek Legal Protection Or File For Bankruptcy As Your Last Option
Have you lost your job because of the corona-virus pandemic and you have no other source of income or savings? Seeking a legal protection or filing for bankruptcy might be the best option for you if you can no longer meet your debt obligations.
If the lender has refused your debt settlement plans, you can seek legal protection to protect your properties from being auctioned by the debt collectors. You can also consult a reliable bankruptcy attorney to find out if it will make sense to file for bankruptcy depending with your current financial burden.
5. Open an online business
The world is changing, and we are seeing the change right now! The opportunity to start a business from home is an easy option with no need for a college degree or complicated studies. All you need is a computer and an internet connection and …. that’s it!
it will surprise you to know, you may work fewer hours than your old job and earn more money.
For more information about opening an online business read this article: here’s 10 ideas for online business. you can start-today
6. Be Aware Of Scammers
Finally, avoid falling prey to any suspicious debt relief scheme or organization that is providing a quick fix solution to your financial problems during this corona-virus pandemic as it might be a scam.
Although the economy has been disrupted and thousands of people have lost their source of income, you can still mitigate the negative financial effects by applying the above tips. If you can adhere to these measures effectively, you will cope with the “new normal” until normalcy returns.