Dealing With Debt During COVID-19

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Despite signs that the worst of COVID-19 may soon pass, the financial impact is sure to affect people up and down the country for a long time to come. However, the struggles shouldn’t stop you from wanting to escape debt or improve your financial situation. 

Circumstantial changes have moved the goalposts. As such, conscious efforts are needed to keep your finances on track. Accept the following issues, and you won’t go far wrong.

1| Discover What Help Is Available

If your earnings have been hindered by COVID-19, furlough schemes and self-employment programs can soften the blow. Meanwhile, if you are currently working from home, it may be possible to claim back some of your expenses, such as the increased utility bills. The harsh reality is that only you can take accountability by discovering what help is available. Still, there should be no feelings of guilt of seeking relief from the system you’ve paid into, especially in these unprecedented times. Embrace it.

2| Don’t Be Afraid To Take One Step Back

COVID-19 may cause you to deviate away from the original pathway. However, there’s nothing wrong with taking one step back if it will enable you to move forward in the long run. Mortgage payment holidays and credit card repayment breaks are ideal solutions. Payday loans, overdrafts, and other short-term relief may help you avoid falling behind on bigger accounts. The last thing you need is late payment fees and fines. Speak to creditors, and then create a prioritized list of the remaining short-term obligations.

3| Control The Controllable 

This unprecedented situation has highlighted the fact that some things are more important than money. So, if some aspects of your financial situation have escaped your control, you must not dwell on them. Instead, you should focus on ideas such as rebuilding your credit score. After all, this is what will help you come out of this difficult phase in the strongest position. When these issues are under control right away, you can then place greater attention on other issues once normality has returned.

4| Analyze Your Spending

Income opportunities are limited right now. Even the hopes of securing a promotion at work may need to be put on hold. Thankfully, you can continue to make significant improvements by treating your expenses. This period of lockdown has probably highlighted areas of your social life in which you waste money. Use this as an opportunity to cut them out forever. When supported by using automated discount finders for future purchases, your outgoings will fall. Switching to cheaper brands can work wonders too.

5| Identify Long-Term Strategies

If you can get through this phase and make minor improvements, that’s amazing. However, you should not forget the long-term goals of becoming debt-free. There is more time on your hands, and this is your chance to research future debt relief ideas. Bankruptcy should be your last resort. You can look at consolidation or borrowing money from relatives once this has all blown over. Alternatively, you could work extra hours to speed up repayment processes. Plan your progress today, and it’ll guide you tomorrow.

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