6 Strategies to Combat Financial Struggles During The COVID-19 Pandemic

6 Strategies to Combat Financial Struggles During The COVID-19 Pandemic

Many people were unprepared for the swift blow the 2020 pandemic would deliver to their finances, with a shocking number of jobs lost virtually overnight. You may want to blame governments or just your luck, the fact remains that individuals all across the world are staring at a bleak future if they do not find ways to cope financially in a way that they can come out of this crisis unscathed or just partially troubled. Taking stock of how things look at the moment, the current world situation doesn’t seem to be getting any better in the weeks or months to come, unless there is a permanent solution tot he problem. Even if that happens, businesses and the economies of countries at large will take time to get back to their feet and stabilize.

Meanwhile, if the coronavirus has you staring at a dwindling bank account in dread, wondering how you’ll pay your bills, here are some ideas that may help. 

1. Get a Small Loan

No-one likes to think about adding to their debt, especially in times as uncertain as these. Having said that, there are fast cash loans with flexible repayment schedules and low-interest rates that can help you during the pandemic. For this to happen, you need to ensure some specialists that deal with AR recovery services. They will ensure that all the payments are delivered completely without any setbacks. As a result, the client can focus on the healthcare he is provided with.

Although you may be tempted to take advantage of the government’s cease on foreclosures and disconnections during this time, it’s a good idea to keep your payments on track if you can to avoid potential problems once the bans are lifted. 

2. Get Another Job

If you’ve been laid off because of the pandemic, you can keep your finances on track by getting another job. While some businesses have been forced to close, others are booming and need more help. Check sites such as Indeed and Monster to find work that will carry you through this tough time. 

3. Watch for Government Stimulus Payments

Many people qualify for government stimulus payments, which can be a huge relief since you won’t need to pay it back and it won’t be taxed later. While there’s talk of multiple payments as the pandemic continues, this hand-out may be a one-time thing. Use the money to catch up on bills, or if you don’t need to spend it immediately, restock your emergency fund. 

4. Refinancing and Home Equity Lines of Credit

If you own a home, you are likely sitting on a substantial amount of equity that, if cashed out, could save you from financial ruin during the coronavirus outbreak. You have a couple of options to access the equity in your home: home equity line of credit (HELOC) and refinancing. 

A home equity line of credit usually carries a lower interest rate than most credit cards, making it a better choice in financial strife. Alternatively, refinancing can potentially save you thousands while giving you access to a lump sum of cash from the equity built up in your home. Talk with your lender to see which option is best for you. 

5. Talk to Your Creditors

Under normal circumstances, your creditors may allow you to defer payments for a fee. These aren’t normal circumstances, however, and many companies are waiving their fees, allowing you to easily make payment arrangements with no additional cost. 

The good news is you likely won’t have to prove a hardship to qualify for leniency when you call your creditors, but the bad news is, the leniency won’t last, so don’t take advantage of this option unless you truly need to. 

6. Turn to Your Community

When all else fails, you can always turn to your community for help. Churches, food banks, and other organizations are happy to lend a helping hand in any way they can. Many of these organizations have set up emergency relief funds to assist residents during the pandemic. 

Even if you’re not comfortable taking from others, remember, we’re all in this together and there’s no shame in asking for help, especially now. While you won’t be asked to repay anything you receive from these community foundations, you can give back by volunteering your time to help others in need as well. 

The COVID-19 pandemic affects us all financially in one way or another. If you find you’re struggling during this time, try one or all of the strategies listed above. 

Christie Lewis
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