Sudden occurrences can often throw the best of plans into the air. Take Coronavirus, for example. When the pandemic started to spread rapidly across the world a couple of months ago, the global economy took a significant hit despite the best of investors and experts planning. The fate of those who hadn’t planned their finances can only be imagined.
It’s only natural to stress out under such a massive financial crisis if you’re stuck at the wrong side of the coin. Moreover, with experts predicting that the economy to be on the brink of a worldwide recession, everyone’s woes could easily quadruple.
In such a depressing scenario, the key lies in not losing hope and managing personal finances so that one can sail through these testing times without drowning. And the tips mentioned below can certainly help:
Avoid credit cards
The number one tip is to avoid using credit cards. Until you are on your feet again, it is advisable to stay away from them.
Calculate your expenses
This includes all bills, expenses, rent, etc. Some countries offer unemployment benefits and even a COVID-19 relief package. Check if you’re eligible to access them. You can also withdraw from your superannuation.
Create a list of your financial commitments and find the ones you can defer. Request your lender for deferring payments on any loans, mortgages, and credit cards you may have. The fact that you will not have to make a payment instantly could help you use the money for other immediate purposes, such as paying rent and buying groceries.
Each lender has different rules and regulations. You can always contact your lender to talk about the situation and come up with a plan. Do note that interest could accumulate across the deferral period. You will have to pay that along with the principal amount at the end. Your lender may also accept to extend your mortgage period.
Make extra cash
Now that’s easier said than done! Yes, it’s hard to find jobs when no companies are hiring, and existing employees are getting laid off. However, use this opportunity to skill up and start freelancing.
Otherwise, look for jobs in your area. You could find employment in a manufacturing plant or maybe a job as a babysitter. Use small opportunities to help others and make some money in the process.
With reminders, you will not forget anything important. By having digital reminders set, you will receive notifications every time something is due. You can also schedule appointments for talking with the bank, your mortgage company, and more.
To wrap up
Dealing with a financial crisis can be difficult, but if you keep your calm and think straight, you can overcome the most challenging of situations. We hope our tips help you!