Due to the economic uncertainty caused by the coronavirus (COVID-19), you will want to master the method to protect your finances. It is difficult to predict how the situation will be shaken and how the economy will eventually change. Perhaps the recent events have had a profound impact on your finances. Perhaps they affect your income, which in turn affects your ability to repay your bills and debts, thus exhausting emergency funds.
If you experience a difficult financial situation-unemployment, or loss due to a medical emergency or bill-and want to know how to protect your credit and finances. Here are some tips about this:
Keep Tab On Your Spending Plan:
Check your spending plan methodically and see what adjustments can be made. Not entirely sure where your money went? This requires some investigation. There are several simple ways to solve this problem. A good way to solve this problem is to check your bank statement or use a money management application. This may reveal the truth about your spending and saving habits, not what you think you did.
Seeing that you have been spending money, you may want to reduce the use of specific areas (we will introduce later) or make some adjustments. Every reduction you make should be used to pay the necessary expenses and increase emergency funds.
Reduce Expenses to Protect Your Finances:
Look carefully at your spending plan and see where you can cut expenses. This may be a “big winner”, which may mean cutting one of the three main expenditure categories-housing, transportation and food. I will say it very politely, but depending on your consumption habits, this will most likely include the fourth category: online shopping.
You can also start with “easy to win”, these costs can be reduced without spending a lot of energy but can save a lot of money over time. For example, reduce your subscription or delete all of it. Another simple strategy? Call your cable, internet or mobile phone provider and see if they are willing to lower your monthly payment. Usually, this process takes about 20 minutes, but as time goes by, you can save your money. I once negotiated with me to reduce the price of each online bill by $ 20 and save $ 240 per year.
Deal With Your Debt:
Try to be tempting in another way, so facing the debt situation is crucial. First, make a note of all debt lists; the amount, interest rate, and how long to pay off.
You also need to check where the debt is stored. If you are not sure whether the arrears are paid off, you can get this information by contacting the original lender or viewing the credit report. Every year, you can get free credit reports from the three main departments of Equifax, Experian and TransUnion.
Due to the coronavirus situation, the Coronavirus Assistance, Relief and Economic Security (CARES) Act will suspend federal student loan payments until September 30, 2020. You do not need to contact or take any action with the student loan service agency. In addition, your interest will not increase during this period.
As for private student loans, you still need to pay. Although your payment will not be suspended, some options may make your payment easier to manage. For example, student loan refinancing may lower your monthly payments or lower interest rates.
Call your creditors:
If your financial situation is restricted, you want to contact your creditors as soon as possible. Yes, it may cause a lot of anxiety, and you would rather postpone the conversation as long as possible. However, there is still a long way to go to tell creditors and lenders about your situation.
This shows that you care and are responsible for the debt. The other party will not be so blind, which gives them time to come up with some different options. For example, maybe you can temporarily suspend payment, reduce the minimum payment amount for each cycle or propose another payment plan.
Credit card expert John Ulzheimer, who was the head of FICO and Equifax, pointed out that requesting to skip payments or reduce monthly payments is only the last option. Otherwise, you may unnecessarily extend the loan payback period. If you can, you You can avoid delaying payments to the back end and avoid expanding loans.
Watch your credit score:
Checking your credit score regularly is like tracking BMI when trying to make yourself healthier. Turn credit monitoring into a habit and check your credit score about once a week. If you sign up for a free credit monitoring service, you can see which factors are hurting and help you improve your score. You will want to continue the best practice of maintaining the best results-don’t take too much debt on the card and pay on time.
Rely on your community:
In difficult times, please turn to your tribe and discuss your financial situation with them. They may attract you through various means to increase your cash flow, provide childcare services or help you find resources to alleviate financial pressure. Your friends and family can also point to useful information, provide guidance, or just express emotion through words of support and encouragement.
Protecting your credit and finances can be a difficult task, especially in difficult economic times. However, making a plan, taking actionable small steps and sticking to the plan can help you do everything possible to keep your money. No matter what your financial situation is, you can find a better place.