coronavirus outbreak. There’s simply no telling how this pandemic will affect our livelihoods. With the Omicron variant now being detected, there’s no evidence that the threat of COVID is vanishing anytime soon. COVID has wreaked havoc in the financial sphere worldwide. Millions have lost their jobs, and others have suffered pay cuts. Managing your finances in the face of such a crisis is a very daunting task. However, if you manage your finances well, then there’s a possibility that you’ll get out of your money problems once the pandemic is over
Below
are a few financial decisions you can make after the pandemic.
1.
Negotiate with creditors for a better deal
Once the pandemic gets over, you can go to your credit card company to negotiate your debt amount. If you have a sizeable debt on your credit card, you can get a balance transfer card. You don’t have to pay any interest on your debt if you opt for a balance transfer card.
However, there’s a period within which you’ll have to take advantage of that offer. In simpler terms, you’ll have to pay your debt off within a period, say, 7 to 8 months, as stipulated by your creditor. There’s another caveat to this. To get a balance transfer card, you must have a good enough credit score. Suppose you think you can pay your debt off without interest within a particular period and you have a good credit score. In that case, you should think about negotiating with your credit card company to get yourself a balance transfer card.
There’s
still a way of negotiating with your credit card company, even if
your credit score is not that great. You only need to tell them that
you believe you might lose your job and that there will be no way for
you to repay what you owe. Being upfront about it is the best way to
go. For this, you can hire the services of a professional. You can
either choose to go for a debt consolidation program or a debt
settlement program.
Go for a debt consolidation program: Debt consolidation means that all your credit card debts are added up into a single amount, and you only make one payment per month to the debt consolidation company. They will make payments to your creditors on your behalf. Plus, they can do away with any penalty charges your creditors ask you to pay. A debt consolidation program lets you pay off your entire debt within a maximum of five years. If you need lower monthly payments, consider a debt consolidation program. You’ll be paying less interest if you take advantage of this plan.
Avoid taking out payday loans: Payday loans are notorious for costing a lot more than the amount you borrow. There are different kinds of penalties associated with payday loans that increase the total debt amount, which makes paying off a payday loan incredibly tricky. Just like other debts, this affects your mental health along with your physical health. It also affects your credit score. You can get payday loan relief through debt consolidation. It would be best if you do it as soon as the pandemic period is over.
Use a debt settlement program: As the name itself suggests, this program lets you pay off a portion of your total debt amount, and the creditor erases the remaining part of it from your account. The debt settlement company meets with your creditors and negotiates your debt.
2. Stop spending on luxury items:
When revising your budget, consider which expenses are necessary and which ones are not. Authorities are busy looking after the health of the citizens. However, they’re not paying enough attention to the financial side of things. The situation may get worse once the pandemic is over. It would be a good idea to prepare for it well in advance by only spending money on necessary things.
3. Buy a life insurance policy
The coronavirus pandemic has shown us that getting life insurance is a must. If you’ve never considered it before, now is the time to do so. We recommend you buy life insurance as soon as the pandemic period ends. If you already have a life insurance policy, review your policy in detail with your agent.
4. Set aside an emergency fund
Set aside a certain amount of money that can see you through a minimum of four to five months. Many people have lost their jobs during the pandemic, and having an emergency fund in place will help you fight off hard times should they come your way.
5. Invest in Certificate of Deposit accounts
One of the best things you can do after the pandemic is to look for places where you can get lucrative interest on your deposits. You can deposit your money online on the deposit accounts certificate that gives you more interest than any other bank account
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