
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

REDPIXEL.PL/Shutterstock: You’ll need to have a decent credit score to get approved for 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

Stokkete/Shutterstock: Don’t use your credit cards as the source of your 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

Monster Ztudio/Shutterstock: The state has deferred payments on federal loans without penalty until 2021
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 Investments & Savings
-
`
How to Choose the Right Financial Advisor
Start Your Search Early It is never too early to start researching and interviewing potential financial advisors. Even if you do...
June 25, 2023 -
`
The Importance of Scaling Up Private Capital
Private capital drives economic growth, innovation, and job creation. It refers to investment funds from private individuals, venture capitalists, private equity...
June 14, 2023 -
`
Creative Tips for Finding the Highest-Paid Internship Opportunities
Use Your Network Find out if anyone you know can help you get your foot in the door for an internship....
June 4, 2023 -
`
Take a Peek Inside the Famous ‘Invisible House’
Joshua Tree National Park is known for its breathtaking natural beauty, stunning rock formations, and unique flora and fauna. But in...
May 23, 2023 -
`
How Larry Fink Became the King of Wall Street
Larry Fink is a name that is synonymous with success in the world of finance. As the founder and CEO of...
May 15, 2023 -
`
The A-Z of the Fulfilment Process for an E-Commerce Business
For an e-commerce business, the strength lies in the flawless execution of customers’ orders and delivering them as fast as possible....
May 4, 2023 -
`
Investing Your Emergency Funds: 7 Tips to Get Started
When it comes to handling your money, having an emergency fund is essential. Having a cushion of cash in case something...
May 4, 2023 -
`
Here’s All You Need to Know About Private Banking
When it comes to banking, you have a place where you can go and store your income and your savings so...
April 27, 2023 -
`
How Americans Can Overcome Credit Card Debt
Are you drowning in credit card debt? Well, you are not alone. With the average American household owing more than $8,000...
April 19, 2023
You must be logged in to post a comment Login