One of the more unfortunate side effects being felt around the world in the wake on the ongoing global pandemic is the pressure on people’s finances. Many people the world over, not just in the US have suffered unjustly due to job losses, reduced working capacity and frequency loss of benefits to aid them until they find more suitable employment.
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The festive season in the US saw the number of food bank users spike as millions of people flocked for assistance with being able to feed themselves or their families. With many people worrying about how they will keep a roof over their heads or how they will avoid financial ruin it is easy to see why public debt levels are at their highest.
Regaining control of your finances
The new year is always seen as a good time to reevaluate your finances and prepare yourself for the year ahead to make sure you are able to cope with any excess demand on your income or you are able to adjust your spending to account for changes in your income or the event of job losses.
Saving money is not about cutting back on frivolous and unnecessary spending – take out coffee and avocado toast are not just for millennials, but there are other ways you can save money on your outgoings.
Reduce subscriptions and luxury items you can live without. Negotiate tariffs and payment plans on your cell phone bills, utilities, or cable tv. Regain control of your spending by living as thriftily as possible to make your income stretch further or to be able to put away to use in the event of job losses or reduced income.
While garage sales may not be a great idea, you can still sell your unwanted possessions online via sites such as Craigslist, eBay, and more. Are you looking to get rid of your car to reduce outgoings? Making sure you have all the correct documentation will make the sale smoother, however, you can still sell cars with no title to companies with experience in this area.
Debts and Covid -19
Even if you experience a financial hit, you are still liable for your debts so making a plan of how to approach this situation sooner rather than later will serve you well. From paying off as much as possible while you can to reduce your overall debt level to a more manageable payment – the snowball method is a great method for tackling debts.
If this is not possible, consulting with your creditors to inform them of your situation and arranging a mutually beneficial payment plan before the situation gets out of hand is advisable. With the current climate, it is likely companies will have experience in helping customers deal with the impact of the pandemic and will be able to assist you in making sure your credit score does not take too big a hit impacting your future ability to get credit.