How to Whittle Down the Impact of COVID19 on Your Wallet

Financial uncertainty is on the horizon, and it will continue to loom until there is no update from health experts about the pandemic called coronavirus (COVID19).

The virus has not only put the mask on your face but also your finances. The number of cases are rising with each passing day. Despite rigorous efforts made by the government like lockdown, the pandemic does not seem to be relenting to take people’s life.

Though lockdown has been the only way to contain the virus especially until no vaccination is available worldwide that may take at least a year to roll out, it has left no stone unturned to decimate the economy. It is leaving all citizens to be worried about their financial condition.

Apart from shutting you in, the lockdown has curbed the flow of cash, which is nothing but the invitation to financial instability. Although the government has made it compulsory for employers to pay to employees, including those who have been whisked for quarantine, it is becoming hard to meet regular expenses.

There is yet no surety about when the country will be able to get over this pandemic, which is why it has become essential to brace yourself for financial instability.

Start With An Emergency Budget

If you do not have an emergency fund, you do not need to panic. It is never too late to start. Look at your current budget and start cutting back on expenses. Now is the time you cannot afford to be spendthrift. Make sure that you are spending money on essential items like groceries, rent, utility expenses, and the like.

Try to ignore to spend money on non-essential items like food delivery, online shopping sprees etc. However, some of the expenses you may have automatically stopped incurring like theatres and clubs due to avoiding congregation to prevent yourself from the deadly clutch of COVID19.

Try to make sure that you spend less and save more. The higher your savings, the better it is. Do not put it off. Just start it. The sooner you start, the better it is.

Inform Your Lenders of Your Financial Situation

Just building an emergency cushion is not enough to get over this situation. Talk to your lenders and inform them of your financial details. Tell them how your finances are affected due to the pandemic threat, and you are facing difficulty making repayments. If you have an outstanding very bad credit loan, ask your lender if they could extend the repayment date or put you on a different repayment plan that comes with lower interest rates – at least for a specified interval.

Mortgage borrowers are struggling to keep up with repayments. The government has allowed borrowers to avail a mortgage payment holiday, but this is possible for good credit borrowers who never made a default. Though the government is providing some of the benefits, most of the people have no other way around because of bad credit rating, and therefore they are on the verge of falling in an endless circle of debt.

If you inform your lender, they are likely to consider your financial situation and offer you a deal that suits your budget regardless of your credit rating. They may allow for a repayment extension or they may cut repayments half so as not to put strain on your wallet.

Remember that if your lender provides you with a moratorium period, you do not have to pay anything, but it does not mean you are free from the obligation. The interest will continue to accrue and once the moratorium period expires, the lender will recalculate to determine your monthly repayments. Note that then you will be paying slightly higher repayments than before you put on the moratorium period.

Stop Stockpiling

According to a survey, most of the people are spending money on stocking up on goods like toiletry products, food etc. Stockpiling is not recommended, especially when the economy is rocky. It will affect not only the balance between demand and supply but also your finances. What if you catch an emergency?

Experts suggest that you should buy things you need only. Panic buying will leave you broke even before you realise.

If you follow the tips mentioned above, you will have a budget to cushion the pandemic. However, you can still face some problems with cash if an unexpected expenditure pops up. In this situation, you can take out instant cash loans with a reliable direct lender loans like extramilefinance.uk.