The COVID-19 pandemic has directly contributed to lost hours, wages, and jobs, and many who have been impacted are enduring the stresses of financial insecurity. But don’t lose hope, there are steps you can take to alleviate your financial burdens.
Track Your Spending: If you haven’t already, now is the time to revamp your budget. Are there services or subscriptions you can cancel? If so, now is the time to eliminate non-essentials. Keeping a financial notebook is a good way to track your vital and non-vital expenses. If you’re really struggling, reducing the amount you’re currently putting into your retirement can free up extra cash to put toward essential expenses and a savings nest egg. This may not be the ideal strategy, but it also isn’t a permanent one.
Minimum Payments: If you’re struggling with mounting debt and have been paying beyond the minimum on one or more loans, now may be the time to utilize the minimum payment. While it may slow the progress of your repayment, it can provide the means for greater financial security, and you’ll eventually be able to pay more again.
Consider a Debt Management Plan: A debt management plan can help to consolidate your debts into one payment. This will allow for easier debt management. A debt management program counselor will contact your lenders and talk to them about how to alleviate some of the financial burden including lowering payments and lowering interest rates.
This may go without saying, but don’t take on any new loans. In this way, you can circumvent incurring new debt and focus only on your current finances.
Watch Out for Scams: Scammers are everywhere, so if something seems like an amazing offer, or they’re asking for money upfront, beware.
Don't let the pandemic ruin your chance at financial freedom -- reach out and get help managing your debts today!