Having money worries is something many of us experience, whether it’s feeling overstretched to maintain essential bills or suffering a loss of income due to redundancy. So, when a global event such as the coronavirus pandemic disrupts daily life, it can take everyone by surprise and impact their finances, leading to many more people experiencing difficulties. If you were planning to borrow money, boost your savings or work on reducing your debt, the pandemic may have impacted your plans. Here are some of the ways you can get back on track.
Find Specialist Lenders
For those looking to borrow, you may have found some lenders made doing so more difficult due to COVID-19. With economic uncertainty impacting businesses, many lenders restricted lending activities temporarily meaning those wanting financial help were left with fewer options to choose from. For people with a low credit rating, knowing where to turn isn’t always easy, so finding trusted bad credit loans online to help during this time can be ideal. As this type of loan doesn’t focus on your credit history, it provides those with the affordability for repayments to get the funds they need to cover an emergency expense. Specialist lenders can provide flexibility that matches what you can afford, so for those on a low income, potential help is available.
Reduce Non-Essential Spending
Whilst there may have been an impact on many people’s incomes, the one thing that can be controlled is spending on non-essential items. Maintaining essential outgoings is always a priority and many may have found doing so difficult during the pandemic. That’s why reviewing your finances and discovering opportunities to free up some of your income will help. It may have been a while since you last reviewed your finances, so comparing your income with essential outgoings should leave you with a disposable income to work with. If this is low, it will indicate that you have a high amount of non-essential spending. Checking bank statements will quickly show where this is going and help identify where savings can be made, boosting your income towards things you really need.
Talk to Your Creditors
One of the best things to do if your finances have been impacted throughout the pandemic is to speak directly with your creditors. Many people took advantage of repayment holidays on loans, mortgages, and more to help ensure if their income had been severely affected, they still could afford the essentials such as food and utility bills. By speaking to your creditors if you are struggling, they may be able to help and arrange something similar. Some companies only offered repayment holidays during the pandemic temporarily, so you will need to check if it is still an option if you require something similar. Your creditors may be able to help in alternative ways, so rather than ignore them if you are struggling to maintain repayments, speak to them and see what options are available to you.
If you are experiencing financial difficulties, you should consider whether further borrowing is the right option for you. You can seek independent financial advice whilst also speaking to your creditors, and receive further help on budgeting and managing your finances.
Main Photo by Miguel Á. Padriñán.