The pandemic has affected almost everyone financially in some way. Many people do not have friends they can borrow money from seeing as most of the people they know are also experiencing financial turmoil. The government has tried to alleviate the problem by offering unemployment reliefs and payrolls for small businesses, but it is not enough. Here are some ways people can avoid or delay bankruptcy during these times.
Inform the Mortgage Lender in Due Time
Someone who has been laid off and cannot pay their monthly rent or mortgage should quickly inform their mortgage lender. The lender may agree to give you a forbearance – a temporary period during which no mortgage payments are due.
Pay the Credit Card Minimum
You should put some amount away to pay your credit card minimum any time you receive a government relief. During the crisis, it is advised that unemployed people should not pay more than required toward their credit cards. And, if at all possible, stop using credit cards. The interests charged on the credit card can hurt an individual’s financial stability.
Consider an Inexpensive Car
If someone is unemployed, they are probably not using their car as often. However, many people still have to run errands with their vehicle even when they are not going to work. Therefore, car expenses may be drastically reduced. Yet with little to no source of income, the individual may want to trade in the car and get a cheaper one. The economy will eventually recover, and one can always get another car. The most important thing for now, however, is surviving.
Look for an Alternative Job
The lockdown has driven many companies to develop new opportunities that all employees can explore. It can be easy to sit back and wait for the economy to improve before finding another job. However, this should not be the case. An individual should identify their skills and find out what they can do right now. For example, there are many work-from-home jobs that now exist, such as web design, proofreading, content writing, and much more.