COVID-19 and managing your debt
With the recent coronavirus outbreak, managing your debt may have become even more difficult. Staying on top of your debt makes it easier and potentially cheaper to manage. Debt is something a high number of us either have, or have gone through in our financial life cycle, with 8.3 million people in the UK in debt.
Here are our top five tips to manage your debt during this time.
1. Check what debt benefits you are entitled to
If managing your debt has been affected by the Coronavirus, you may be entitled to claim benefits. You can find out this information here. You can also access free advice from professional services – Citizens Advice Bureau offers advice on debt solutions, bankruptcy, and debt management plans. Check out their range of services here.
2. Inform your debtors
If you have debt payments that are weighing you down, and you are finding it difficult to make debt repayments at a certain level, you must inform your debtors. Lenders and the government has announced new debt servicing programs to help consumers during the Coronavirus. For example, the government has announced a temporary ban on evictions and 3 month payment holidays for mortgages. It’s always better to over-communicate and keep your debtors in the loop about your financial situation.
3. Find remote money making opportunities
The government and a number of reputable health advisory services have announced the necessity of staying at home to limit the spread of the coronavirus. If this has had an adverse effect on your current employment, working remotely is a great way to buffer against debt. In our previous blog posts, we’ve already outlined some remote working opportunities.
4. Evaluate your budget and debt management
Getting a sense of your income versus your expenditure is the first way we recommend you can begin minimising your debt during this time. It becomes difficult to pay off your debt when you haven’t been intentional about spending and saving your money. Luckily, we’ve got you covered – we’ve written a whole guide to some of the most popular budgeting methods, where we break the top three budgeting methods down for you here: the Piggy Backing Method, 50/30/20 method, and the Zero-Based method.
5. Prioritize your debts
We’ve written a whole post on how to prioritize your debts and manage your overdraft. It’s important to stay up to date with the most important changes and ensure that as times change, you are managing the most pressing debts first. Check out our article on debt prioritization here.
Free debt advice services:
Above all, your health and safety come first. Do endeavour to make the most of all free resources, and government aid as much as possible.