The pandemic has caused stress and anxiety levels to soar, with people worried about their health, as well as their finances and the state of the economy moving forward. If you’re struggling to make ends meet, or you’re concerned about getting into debt as a result of losing your job or working fewer hours, here are some steps to take.
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Seek advice
The best place to start if you’re worried about money and the financial impact of the pandemic is to seek expert advice. Millions of people all over the world are facing hardship because they have lost their jobs or their businesses are floundering. Governments have stepped in to provide support and there are initiatives and programs in place to provide assistance to those who have lost income. Reaching out will enable you to ascertain whether you are eligible for help. You can also contact lenders and banks to ask about measures such as mortgage holidays and credit card payment freezes.
Try to reduce debts
The Covid-19 crisis has left many people with a hole in their finances, with incomes dropping and bills to pay. If you’re worried about your financial situation, try to avoid getting into more debt by steering clear of high-interest loans and credit cards. Be aware of Debt to Success System scam imitators and choose reputable, reliable companies and programs if you’re looking for help with debt relief and repayment options. If you do need to borrow money, compare rates and offers online and consider asking a friend or a relative for a loan, rather than taking out a loan with a high interest rate. It’s also wise to investigate options that will help you reduce household costs like the payment freezes and mortgage holidays discussed earlier. This will help to relieve pressure and prevent you from adding to your debt.
Revise your budget
Budgeting is an incredibly effective way to monitor and control spending. As the pandemic continues to affect our daily lives, it’s advisable to adapt and review your monthly budget. There may be costs that you can cut out, for example, commuting if you now work from home. Update your income and outgoings and take a closer look at your expenses. Highlight any costs that you could either eliminate or reduce. Have you got subscriptions or memberships you’ve never used, or are you still paying for a travel card you won’t need for months? Cancel direct debits that you no longer want or need to pay and establish a budget for essential items, such as groceries. You can save money by planning a menu, writing a list and shopping online. Online shopping enables you to keep track of the total, which makes it easier to stick to your budget. It’s also helpful to compare prices for any insurance premiums that are due for renewal. With the holidays coming, you can also save by signing up to discount sites and agreeing to a gift budget with friends and family members.
Money worries are the most common source of stress among US adults. If the pandemic has put a strain on your finances, seek advice, take advantage of support initiatives, try and reduce high-interest debts and review your budget.