Getting Out Of A Financial Hole Post-Covid

Every business and home is battling debt. Every government on earth is now battling debt. It’s a consequence of going into lockdown and trying to wrestle with this pandemic. We’re all in the same boat and need help to avoid being sucked into a never-ending cycle of mountainous debt. But everyone is in different circumstances yet still suffering from the same issues. So we can use some things to help us that may overlap but others not as much. What are the best techniques to get out from under debt, quickly and use economic recovery to actually start anew?

Student loans

Never before in history has there been a worse time to be under student loan debt. You’re in an environment that is not good for long-term jobs as millions of people are signing for unemployment. So many people have been fired from their roles because companies have taken such a bad hit from the lockdown. We can try our best to find ways to still pay off our student debt but first, we need to understand the problem.

Read this debt to Success System which states the most important reasons why student debt has broken a record of $1.6 trillion. This means that the government is owed this amount of money just from students that are yet to pay off their loans. Take a look at the most affected, as those with greater loans will be left in a position whereby their high-demand jobs may become low-demand. We’re talking about doctors, engineers, surgeons and business graduates to name a few. Some people who have a Masters degree are in precarious positions because they have six-figure debt and yet, the economy is now in a recession; however, there’s no need to despair! You can refinance your student loan in order to lower your interest rate, monthly payment, or both.

Debt consolidation

The debt companies would rather you pay something than nothing. It’s hard to wrap your head around it but it’s true. So, speaking with a debt consolidation company could bring all your outstanding payments under one roof. Those creditors you’re dealing with, would have to deal with someone else, i.e. the debt consolidating company. 

Your payments would be extended because the monthly amount would decrease substantially. This allows you to get your affairs in order. You’ll need to set up a bank account from which the consolidator can take the payment money. Chances are they will need to agree on a threshold of the amount that can be in the account at any one time. This is to ensure that you have at least 2-3 months of payments always in the account. Anything less than this and it would spell bad signs that you’re failing or ditching on the agreement. 

Find any job

We are in a recession that is 3 times as bad as the 2007 crash. Many people warned about the issues in 2007 but no one saw this coming. That means that we have to look at the situation as an unknown. Getting any kind of job through this difficult time will help you out of your financial hole. Always remember that it’s just temporary and that the recovery will spell good things, as businesses begin to hire once again. We’re finding that some jobs are more available than others. For instance, hospitality has seen a big increase in jobs but so has traveled. Guides of local areas, servers and roles such as retail employees.

Work from home

Do what kind of freelance role you can. Many people have skills and if you have something that you can create or do, such as make paintings or do accounting, this is something you should market online. Working from home has indeed become the norm but it’s not suited to everyone just yet. That’s why learning how to be more productive at home, how to schedule your day and how to market yourself online are crucial steps to becoming more financially independent during this time. 

If you’re still at your job or on furlough, you can ask your boss to be given some kind of role that will keep you busy. If your employers kept you on the payroll through the pandemic, you may be eligible for an erc credit. Working from home doesn’t exclude you from the furlough schemes but you will not be paid extra. The employer simply pays you the remaining, and furlough doesn’t cover all of it. However, you’ll still keep your skills sharp and you will make up for any lost salary since the lockdown.

It’s hard for everyone right now. But let’s not forget that in recessions, the recovery includes everyone. Get a part-time job if you can, continue to work from home if possible and work with your creditors to control your debt.