How to manage your finances in the time of COVID-19 | Folio

Covid-19 caused a debt crisis among different nations worldwide. In light of this issue, the World Bank Group dedicated $157 billion to help developing countries fight the pandemic. Although the measures seemed to help developing nations, many families were left with personal debts.

A lot of them lost their jobs or their family members, thereby increasing the pressure of debts. However, many lending companies have taken the leap to help people in need. One such is Priority Plus Financial, a lending company dedicated to solving debt crises for individuals and families. 

What Caused The Situation?

The sudden outburst of the pandemic caused a never-ending debt crisis for many families. Most of them lost their loved ones, had to care for seniors or sick relatives, and lost their jobs on the way. Furthermore, the lack of financial literacy pushed people into uncertainty. 

How To Clear Debts Fast?

The average debt per person in America averaged $90,460 in 2018. And this increased with the onset of the pandemic. A debt crisis leads individuals to borrow, not being able to keep track of repayments. If you ever find yourself in this situation, keep reading to know how you can handle the debt crisis in simple ways. 

Have a Budget

It’s not easy repaying loans, especially when you have other commitments vying for attention. But, setting a monthly budget will help track your expenses and repay loans faster than you think.

Clear Smaller Debts 

There are two ways you can do this: use your savings to clear larger debts first or use the budgeting method to repay the smallest debt. Either of the methods works well to repay loans quicker. This way you will find some breathing period to set the next payment target.

Try Lowering The Interest Rates

If you have a good repayment history, you will have an upper hand in negotiating interest rates. Especially, if you know the lender well, it might be easier to explain your standing and ask for lower rates. 

Cash In Your Insurance

It could be a hard decision to make, but cashing in your insurance will help close a major chunk of your debt. The main goal is to repay loans as quickly as possible before venturing into other domains.

What To Do In Case Of a Pandemic Debt Crisis?

While the above methods assist with reducing debts, there’s only one way to get out of a pandemic debt crisis – approach a lending company. 

  • They help people effortlessly procure funds. 
  • The debts are consolidated and come as a single invoice.
  • The repayments are easier to track.
  • They provide fixed interest rates.
  • They do not require collateral.

The pandemic debt crisis is hard, but you can always take the help of lending companies. The trick is to figure out the right methods to facilitate monetary inflow and promptly repay loans.