There are a lot of financial concerns people will face on a daily basis. However, the COVID-19 pandemic poses a different and challenging time for everyone. Economies are hurting as a lot of businesses came to a screeching halt. As a result, many Americans have taken a furlough at work or have lost their job entirely.
The health crisis has affected more than just the health sector. It has rippled out to the economy, personal finance, and even relationships between people. The pandemic has swept through the world putting even the most advanced countries on the edge. It overwhelms the healthcare industry that is why a lot of states are asking people to shelter in place. This is meant to help flatten the curve.
For most people, they immediately get beaten down on by financial concerns as it rears its ugly head. This is the effect of your income being impacted by the health crisis. Several industries are trying to find ways to lessen the impact of the crisis. In fact, Forbes even shares that there are some airline CEOs who are taking pay cuts to help their companies stay afloat.
It is safe to say that the virus caught a lot of economies off-guard. Some of the hardest-hit places are the ones who contracted it first. Even as the US was not the first one hit, the virus has nevertheless also spread across all states. As a result, you could be going through a lot of personal problems for the first time. Here are some of them and what you can do about it.
Financial concerns include the possibility of losing your home
As a lot of people start to feel the financial pinch brought by the virus, one of the most stressful areas in your life it can do the most damage is your living situation. You could be renting or paying for a mortgage and either is immune to the effects of the pandemic. If your income is affected, there is a good chance that you will find it hard to pay your landlord or the bank.
If you are renting your place, you can try talking to your landlord. Try exploring ways you can stretch out your payments. Since the health crisis affected a lot of people, there is a good chance that your landlord will understand your situation. Just remember that they are affected as well. Try to look for a way where you can both help each other out.
ABC News shares that the U.S. Department of Housing and Urban Development shares that single-family homeowners with FHA-insured mortgages will have a moratorium on moratorium and eviction for 60 days. You can also look into refinancing your mortgage loan for a lower amount. Just be cautious though that there are closing costs to this as well. This is true especially when you are going with another ender.
Credit card debt piling up during pandemic
One of the biggest financial concerns people would have during this health crisis is their credit cards. To begin with, they might already be carrying huge credit card debts prior to the pandemic. And then the crisis happens and almost every state asks residents to shelter in place. On top of this, your income could already be affected by it as well.
The situation could put you further in debt. It can it more challenging for you to manage your finances during and after the pandemic. This is why you need to take a close look at your finances particularly your credit card debt. To start with, you can talk to your lender if they are providing any hardship assistance at this point. There are a lot of credit card companies making sure their customers are taken cared-of during this time.
Difficult times call for a new approach and this is a time where minimum payments make a lot of sense. It is still a good idea to pay the total amount due at the end of the month. However, the pandemic could have impacted your income and minimum payment makes a lot of sense. You can also consider debt consolidation to make it easier to manage your card payments. One thing to remember though is that under the CARES Act, date reporter by lenders to credit bureaus at this time will not affect your score as shared by Experian.
Mental stress is a silent problem a lot of Americans are dealing with
One of the many things you could be hearing a lot of when the pandemic hit is “new normal”. This is an encompassing phrase that covers a lot of areas in society nowadays. It is applicable to the way you buy your groceries, talking to neighbors, or even with the way the children go to school. The health crisis has affected a lot of people in a lot of different ways.
These changes and adapting to a new lifestyle can be challenging for people according to WHO. More than just financial concerns, this pandemic also puts your mental health at risk. You need to safeguard it as well. The more mentally fit you are, the better you can focus and manage your finances as well.
One way you can do this is to filter the news that you consume on a daily basis. As you are sheltered in place, you tend to focus on updates about the virus. You do not have to dwell and stress over the bad news. Focus on the areas you can control such as making sure you and your family are safe. It would also help if you can choose to identify a positive outlet you can focus on every day. The easiest and most beneficial is daily exercise. You can also learn a new skill or even a few dishes you can cook for your family. The idea is to train your mind to look at the areas you can control. It is also important to have an outlet for your emotions and even creativity. You can also look into focusing on income-positive hobbies to help you earn a little extra money during this crisis.
Losing a job during the pandemic
There is no doubt that one of the biggest financial concerns people have during this COVID-19 pandemic is losing their jobs. As businesses close their doors, employees are let go. If you are one of them, you will have to deal with a huge blow to your finances. Your expenses will not totally stop but your income comes to a complete stop.
One of the things you can do now is to look over and update your credentials. This will help you craft a tailored-fit application you can use to look for a new job. Even while you are sheltered in place, remember that you can continue to work on your professional network. This can help yo identify work opportunities even before they are posted out in public.
The time you have on your hands while sheltered in place can also be used to gain additional certifications or in learning a new skill. The idea is to create a more appealing resume for hiring managers to look at. This can help increase your chances of being considered for the job you are applying for. This is important as USA Today shares that state and municipal employees might start to lose their jobs because of low tax revenue.
The ongoing health crisis has given a lot of people financial concerns as it continues to hammer down the economy but there are steps you can take to make it better. Make it a habit to look at the positive side and make sure to make the most out of the time you have.