Due to the pandemic, there were so many events that could have had an impact on your finances–leading to stress and anxiety. Whether you are facing a job loss, car accident, or an illness–it is important to get the financial assistance you need to handle the situation. The great news is that there are options out there to help you back on your feet again.
We are here to give you our top 5 tips for handling a financial crisis, so you can feel calm and collected about your next financial decision.
Take out a Loan
Although it may seem illogical to take out a loan during a time of financial instability, it can be a great temporary option for you to take care of pressing needs.
An installment loan is an excellent option for you to get some money to cover your unexpected financial situation, like a medical bill or a new car after an accident. The great part is that with an installment loan, the payment typically stays the same throughout the loan term. Additionally, if you want to pay back the loan early, you can save interest charges.
If you lost your job without getting fired, you could be eligible for government assistance. This could include economic reasons, like financial loss due to the pandemic or permanent business closures. Although no one would like to be in this situation, it is important to use your resources. You can apply for unemployment through the state that you worked in. It is easiest to file online, and with millions of American filing for unemployment, the system has been streamlined so you can receive benefits faster.
Ask Those You Trust For Help
While you may hesitate to ask for help, asking a close friend or family member for a personal loan can be a great way to avoid pesky interest rates. Fortunately, if you have someone who trusts you, they may gladly be willing to offer support. You can draw up a contract or offer to pay a minimal interest rate if they wish. Be sure to be considerate and explain you are in an emergency situation. This can still remain a great option because your credit is not affected in any sense– leaving you in the best situation for your future.
Although it is difficult to predict these types of crises, remaining prepared can assist you in unexpected circumstances. When things are going smoothly, try to set aside money in a savings account. If you didn’t have a chance to save before the pandemic, it’s time to start changing those habits. A savings account can be crucial for times like these. There are a plethora of apps that have been created to help users save, with ones that will actually take out of your checking account if you link them. You can visit your bank to set up a savings process that works for you.
Another option is to invest in stocks or obtain a “side hustle” job that can make you extra money. By saving your money or investing it when the time is right) you can be well prepared so you never experience a shortage again.
Minimize Any Unnecessary Spending
You may not have to do it now, but start thinking about ways to cut out unnecessary bills. Do you need two gym memberships you never use? Are you paying a high amount of money for a landline you don’t touch? It may be time to start thinking about these things, so you can save more.
It also may be a good idea to think about any other daily expenses you can reduce. For example, let’s say you have a habit of going out for your daily coffee before work– if you spend $6 a day on coffee, that’s approximately $120 dollars a month. These small expenses add up over time and cutting these off can be a simple saving method for the time being. If you make your coffee at home, you can save so much money!
This year has been hard and life can pose us many unexpected challenges. However, if you remain prepared and educated you will be able to get through the tough time and come out on the other side.