Having Debts during a Pandemic is Tough–Here are Four Things You can do to Manage Them
The coronavirus pandemic’s blow to the economy can be felt across all social classes. However, it dealt its most devastating blow unto those who were already vulnerable.
People living on the edge financially before the pandemic are now faced with the added challenge of managing their debts during an economic downturn. Many have lost their jobs due to mass layoffs yet bills continue to keep coming.
As a result, two out of three households are reportedly dealing with severe financial issues including not having the means to pay back debts. If you find yourself part of this statistic, here are some short-term debt solutions that would prevent you from totally damaging your finances.
Don’t Just Stop Paying
While it can be tempting to just stop paying your credit card company, it’s best if you get in touch with your provider. Because of the overall state of the economy, they’d be more open to granting requests to temporarily defer your payments, reduce them, or suspend interest charges in the meantime.
Contacting your credit provider and other lenders is certainly worth a shot as a LendingTree survey found that 91% of people who requested a break on their payments were granted one.
If you’re going this route, don’t forget to get the agreement in writing and clarify how you’ll pay back your missed payments.
Get a Balance Transfer Card
If your credit card has a high interest rate, you might want to consider opening a balance transfer card. Choose one that offers 12 months or longer of interest-free use as an introductory offer.
This is an easy way of relieving financial pressure in the short-term, so you can buy time to focus on other pressing problems.
Build an Emergency Fund
People with credit card debt are also discouraged from paying off their credit cards without building an emergency fund first. It’s more important that you focus on saving up six to 12 months’ worth of spending money than paying your entire credit card balance each month.
Debt on Top of Debt
Another no-no is using your credit cards to pay your bills be it your taxes, student loan, or mortgage payments. There are better options for you to try over putting your other debts on a credit card.
Look for state or federal programs that can forgive debts like hospital bills and see if you qualify for them.
More in Debt
Tips to Begin Your Gold Investment Journey
Throughout the centuries, people have continued to hold gold for various reasons. Societies, and now economies, have placed value on gold,...May 10, 2022
The Hows & Whys To Central Banks Collecting Gold
Ever wondered why people are so crazy about gold? Why are nations stockpiling it even when surrounded by a pandemic? If...May 7, 2022
These Items Are Inflating Your Grocery Bill During the Pandemic
As the Coronavirus pandemic continues to wreak havoc all over the world, people are seeing a sharp rise in their grocery...April 28, 2022
The French Love These Condiments and So Will You
Condiments are to food what cheese is to wine—they are aromatic, flavorful, and really complement whatever you’re eating if paired right....April 24, 2022
Tips On Getting Financially Organized
Being able to maximize your money and knowing how to get the most out of every penny is crucial because it...April 8, 2022
How Green Investing Will Help You Leave Behind a Lasting Legacy
Quick question! How do you want people to remember you, once you’ve left the face of the Earth? Seems heavy and...March 27, 2022
5 Money-Saving Tips From Couples Who Cleared $40,000 Loan
The COVID-19 pandemic has affected all of us. But it was disastrous for a New York-based couple, Noami Willis and Ricki....March 17, 2022
Financial Advice From Older People to Their Younger Selves
“If only I knew then what I know now” is a familiar saying to most of us. If only we had...March 4, 2022
Top Tricks to Become A Smart Traveler
Despite their difficulties in coping with stress, lots of workers still try to avoid traveling at all costs. It has become...March 3, 2022