Coronavirus is changing almost every aspect of living in a majority of countries as some have even gone further to implement a total shutdown of operations and services. In these scenarios, it would be difficult to honor your financial obligations. You are likely to deplete your savings on surviving the pandemic and securing a healthy environment for your family. It would, therefore, mean that you will have to pause your loan repayment. Some countries such as Australia have put in measures to cushion its citizens against the financial pinch, they are likely to face.
It is extremely important to act how to safeguard your credit standing and also make it less complicated to return to your feet as soon as the pandemic has ended.
Listed here are several steps you can take if you’ve been financially impacted by the coronavirus pandemic.
This might not be the best time to take out debt, but it will not get any better in the short-run. This could be your last resort in sorting out your loan obligations. If the loan companies are pushing for a listing, you can prevent this by taking out another loan, which has a longer-term so that you can service the existing debts. Since you don’t want disconnections on utility bills, or action from other creditors who may be less than understanding, credit may be the last option in this scenario. While looking out for a loan, check the terms of the loan, penalties, and charges in case of a missed installment. Also, check www.gmcreditz.com.sg they have reasonable rates of interest Most importantly, after the virus is contained, you will need a job, and financial obligations will have increased at inconsiderable rates. Ask yourself if you will be able to afford the loan when you are required to repay it.
Another viable option is using your overdraft option. However, banks have decided to discourage this by imposing hefty charges on overdrafts. Before taking it out, check to see the APR charges.
Alternatively, you can supplement your savings with 0% rate credit cards. Do your homework on the credit cards; apply for those that are offering the best interest rates.
Formulate a budget
With jobs stopped and businesses getting ruined, your cash flow is going to be tighter than before. With no income coming in regularly, you can start coping by cutting on some expenses that are not urgent. Also, you can cut on electricity and mobile phone costs to save for food and other personal effects that are crucial. If budgeting is a challenge to you, consider searching for budgeting tools online.
Check your insurance
Some lenders usually advise borrowers to have insurance for your mortgage. So, check whether the cover is active to help you in servicing the bills. Ask the insurer if it would be possible to pay out in that short notice. Also, some governments like Singapore’s has a directive that makes it mandatory for the citizens to have a Medicare program that insures them against some illnesses. You might want to check this one to ensure you have protection for you and your family at this time of economic disruption.
Notify your creditors
If it is clear that you cannot be able to fulfill the contract terms of regular payments, talk to those you owe money. Make them understand your financial situation early before it becomes a big problem. If need be, reach out to your creditors for a revised payme4nt plan so that you can resume the payment when you can. This helps you to avoid problems such as attracting interest, facing the jury, or having your products repossessed.
Mortgage owners have expressed support to those who leave work to keep themselves safe. There is a three-month holiday for the borrowers. However, this may not be applicable to all individuals. It could be case-by-case. Therefore, if you are part of the cases affected, seek for this holiday before time runs out.
Those people living in rental houses are at a disadvantage, especially those in private residences. It is up to the landowners to decide if they want to give a reprieve to their tenants or not. You can present your case and see if you can work out an affordable rent payment plan that will cover you over this period.
Switch your providers
Engage your utility providers to see if they can have affordable plans for those affected by the pandemic. If they do not have, look for a different provider. You may be given a welcome discount as well as an excellent plan for you during this difficult period.
Those people with prepayment accounts can have their utilities running then the bills be sent to them for later payment.
Borrow from friends and family
It is never anyone’s dream to borrow from friends and family. These are desperate times; hence desperate measures are required. If you cannot get a reliable lender with affordable rates of interest, you can shift attention to your family or friends. This option is cheaper and more flexible than other lenders. However, there is a danger since it may develop into arguments shortly when they request for repayment when you are not ready with the cash.
Avoid expensive loans
Payday loans, pawnshops, and sharks or shylocks are now active on the market targeting the desperate cases of cash. They will attract you and entice you to take their funds. What you don’t know is that even in your financial normalcy, you can never take out these loans and afford them. They are very expensive, with very high-interest rates. check nice deals at https://www.gmcreditz.com.sg/
The bottom line
Coronavirus has disrupted life globally than any other pandemic has ever done. In fact, there hasn’t been any other pandemic before with the viciousness and spread factor like this novel coronavirus pandemic. You couldn’t have predicted this to prepare in advance. Reports have come out explaining how this viral infection was predicted. But the research and the papers were written remain to be papers while the whole world struggles to contain it.
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