The Covid 19 virus spreads like wildfire. To control as well as prevent the spread any further, many places across the globe have imposed strict curfews to all its residents, executed temporary quarantine periods and lockdowns while some nations have temporarily closed their borders to foreigners. These have an effect on many individuals in the workforce as their hours of work have been reduced to adhere to the orders implemented by their governments. Others, unfortunately, had to stop working since several companies and businesses were compelled to close temporarily until it is safe to open to the community again.
Know Your Financial Options During A Crisis
Losing shifts, less working hours or getting laid off would mean a big decline in daily wage. With such situation, it is now very crucial and more imperative than ever to determine what financial possibilities you have. If you don’t have any contingency fund or emergency reserve and/or are struggling to get by during these times of uncertainty, below are a few options to consider:
Consider Getting a Personal Loan
There are plenty of cheap personal loans ranging from $10,000 to $20,000 (or more) on average, with a usual payment term of two to five years. They could lend a hand during financial or income uncertainty or insecurity. Many credit unions, banks as well as online lenders offer such loans. However, you will need to look into what these various lenders offer to match up interest rates as well as other loan terms.
Utilize the Product that has Lowest Rate of Interest
If you aren’t qualified for a personal loan, you might have to make use of a credit card with the lowest rate of interest so as to pay a lesser amount of interest when you settle your bill. Even small difference of percentage points could save you lots of cash in interest settlements.
Apply for Government and/or Community Assistance Programs
In the United States, the government is presently working to carry out policies and guidelines to aid Americans who are financially strapped in crisis like this. However, there are now a lot of other means or programs offered by governments in different levels across the nation.
Food banks are an example. There are also organizations that could help with your utility bills. Social media platforms are a great place to start your pursuit for community groups. Also, your local government must be able to furnish you with helpful info on where to locate and how to contact these groups.
Send Out Momentary Hardship Letters
As per the National Consumer Law Center, if you are striving to pay your mortgage, your initial step is to look for a legal advocate. Then, you could send out letters of hardship to your lenders, such as your mortgage firm, to determine your options.