How to Deal With Financial Stress During COVID-19
Are you struggling with your finances?
The world’s economy took a massive hit from the pandemic. Unemployment rates spiked, and many small businesses closed their doors.
Some companies transitioned to a remote working format to adapt to the change. Many households have changed their spending habits to adjust to the financial hit. However, many people still struggle with the effects of the pandemic.
Not sure how to deal with financial stress? Here are some tips to help you navigate your financial crisis.
Take Care of Yourself
Dealing with a financial crisis can be a difficult and overwhelming ordeal. If you’re out of work, you may be struggling to come to terms with the crisis. Studies show that it can also lead to high implications on mental health.
During these times, it’s crucial to take care of yourself. Remember to eat a healthy diet and get enough sleep. Avoid overworking yourself to compensate for the financial distress. Also, regular exercise, even if it’s only 10 minutes a day, can provide a big boost your mental health.
While you may not meet your friends and family in person, you can contact them through social media. It might also help to start a journal to create daily schedules. Make yourself the priority regardless of what you’re struggling with.
If you’re currently unemployed, you may be struggling to pay your bills. In an emergency, your first instinct may be to pay your bills on time. However, dealing with a financial crisis may require a different approach.
The first things you need to worry about are your necessities, which includes food, utilities, shelter, and clothing. If you’re used to ordering food outside, it may be time to start cooking at home. Not only is it cheaper, but it’s also a great way to live a healthier lifestyle. List only your basic expenses and keep a note of what you can sacrifice.
Create an Emergency Budget
In any case, it’s crucial to have a set budget for monthly expenses. When dealing with financial stress, it’s best to keep a separate fund for emergencies. Start by stripping down your expenses to include only the necessities.
Some expenses that you may not need include subscription services and takeout. You may also need to cut out streaming services that you don’t need. Whatever money you take away, put this into your emergency budget.
This helps you get an idea of how much you need to live. In case you need money fast, your emergency budget can break your fall and help you get back up on your feet.
Look for Side Hustles
With no definite way to determine your income, start looking for other jobs. Side hustles are a great way to start if you’re looking to make extra money.
You can also look around your house for things you can sell. Reselling home utilities and used equipment can get you a good price online. Sort out your closets and find clothing you no longer need.
To get more value out of your clothes, consider recycling them. Some clothes can sell for a higher price when some effort gets put into them. Popular clothes reselling sites include Poshmark and ThreadUp.
Georgia Title Loans
Your car is one of the most valuable assets you have, so it can be difficult to decide if you need to let it go for extra cash. However, here at Georgia Title Loans, we offer what could be a much better alternative.
Instead of giving up your vehicle, you only need to surrender your title. We offer title loans for any vehicle make and model and even loans for motorcycles.
Best of all, you can get a loan approval in just 30 minutes or less, and with no credit check. All you need to do is bring your vehicle, its clear title, and a valid state driver’s license. You can get a car title loan for up to $50,000, depending on your vehicle and your ability to repay the loan.
Applying for a bank loan in Georgia can be a hassle, so title loans are often regarded as a better alternative. However, they do require discipline to make sure that you make the payments on time. And again, you don’t have to give up your car. Georgia Title Loans will simply hold on to your vehicle’s title until you pay off your debt.
Contact Your Providers
If you have a mortgage or are renting a home, get in touch with your provider. Rent or mortgage are some of the biggest expenses you could have. Some states have imposed a ban on evictions, but it’s best to check with your provider anyway.
Be honest when asking about your options. Explain how the pandemic affected your income. Consider asking about alternative payment methods. Some landlords allow tenants to pay only what they can.
Aside from your landlord or mortgage provider, contact your credit card company. Many banks like American Express and Bank of America have offered to waive fees and interest. It’s important to note that some providers work on a case-by-case basis.
Get a Balance Transfer Card
Check if your current credit card company can provide a balance transfer to a new card with a lower rate. You may even get free transfers and promotional periods that include zero interest for a limited amount of time.
However, if you’re considering a balance transfer, be very smart with how you handle it. Look for a card that offers 0% interest for as long as possible, and ensure that the balance transfer will not bring fees with it that cost more than your current cards.
All balance transfer cards require a minimum payment for you to qualify for 0% interest. If you don’t think a balance transfer is a good option, focus on doing things that will result in achieving a higher credit score.
How to Deal With Financial Stress
Hopefully, one or more of these tips will help put you on the path to better dealing with your financial stress. If you’re in the greater Atlanta area and are considering borrowing money against your paid off vehicle, then we can help. Apply for a title loan with us today!