Since COVID-19, commonly known as the coronavirus, has become a pandemic, a lot of people are losing their jobs. Everybody is worried about their finances with no end in sight regarding lock downs and self-isolating. But there are some things you can do to boost your finances during this time and ensure you don’t get into any trouble.
Create a New Budget
A budget is always going to ensure you don’t overspend. During the coronavirus, you can’t throw away your hard-earned cash if you’ve lost your job or your wages have been reduced. So, create a new budget for food and essentials. If you can, try to keep an emergency fund in case a lock down lasts a long time. This is going to minimize your money worries in weeks to come.
Consider a Consolidation Loan
If you’re going to struggle with repayments, this type of loan is the best way to consolidate debt together. A consolidation loan means that you can merge all of the debts you have together into one loan. This has the effect of lowering payments and it can help you during times of need. You can choose between a secured or unsecured loan in order to secure your debts in case of the worst scenario.
Ask Your Employer
There are some companies that are helping their employees through this difficult time. Perhaps it’s worth asking your company if they’re offering any plans that can help you out financially. This might enable you to weather the storm right now and not struggle with money on lock down. For example, some companies are still paying their staff all of their wages or two-thirds of what they usually earn.
Cut Unnecessary Expenses
Do you have and subscriptions or financial commitments that you don’t really need right now? Perhaps it’s time to cut the cord. If you think your money is going to be low during the coronavirus, it’s best to cancel any subscriptions that aren’t necessary or you don’t use. This could be anything from Netflix to cooking subscriptions. Once everything’s over, you can easily restart them.
Contact Your Lenders
If you’re worried about mortgage payments or other financial commitments you have, talk to your lender. This is going to prevent you running into trouble and missing payments without explaining yourself. Many companies are making exceptions to help their customers during the coronavirus. For example, they may waive late fees or be able to delay your payments until you get back on your feet. If you don’t ask and inform them, it’s going to be worse for you.
Apply for a Temporary Job
There are certain businesses that are hiring temporary workers during COVID-19. This includes grocery stores and delivery companies. If you’re really worried about your finances and currently out of work, you could always apply. However, you must be aware of the risks involved with this one. Only do this if you feel comfortable and don’t live with anyone that’s in a high-risk category.