finances

Tips on how to manage your finances in COVID-19!

Looking after our finances is one of the top priorities in COVID-19 (SARS-CoV-2)  global crisis. The financial situation is getting worse each day for most of us, as most places are shutting down for good, as our health is the main priority to stop COVID-19 (SARS-CoV-2) spreading around the world. If you are affected by COVID-19 financially, here are a few tips what you can do to save as much money as possible for the time being. 

Budget

The most important question for you and your family should be, which is the source of income-you will rely on this month. Moreover, in the conditions of collecting a diminished income, it is necessary to establish what are your main expenses.

The main expenses should be a house, apartment rents, mortgages etc. These are the payments you want to state as a top priority. When you have figured out these expenses, look into food and hygiene products that are essential for everyday life.

As most of us are self-isolated, our expenses will change or will be different in some way. Everything that we need has to be in our home. That means no outdoor entertainment, such as festivals, cinema, restaurant visits. Furthermore, kids daycare and schools are closed, so no fuel or parking ticket payments are included in our day to day life for now.

Pause all your memberships, such as the gym or any other activities that would ask to leave the house, get in touch with the companies and ask if it is possible to do it.

Look through your fridge, freezer and pantry for food. If you have enough supplies, don’t go to the shop if it’s not necessary. If you have reached the point where you need to have essential products, make a list before leaving the house. That way you will not buy anything extra! Lower your usual food and hygiene product choice for a cheaper one, company/ branding doesn’t matter at the moment.

All these steps would improve your financial state during the crisis if you make a budget and follow it as a scheme.

Contact your bank or creditor!

It is crucial to contact your bank or creditor if after seeing your budget, you know that you cannot pay your monthly payments on time or at all.

There is a possibility that your bank or creditor will try to help with delaying your payments or even be open to waiving certain fees. Which can help your finances for a moment as one or two payments would fall off your shoulders at least for a month. 

Mortgage deferral

The same goes for your mortgage. Contact your bank or look into their website if they have an option for you to have mortgage deferral. You may ask, what mortgage deferral is? It is a service for you to stop your payment for the small-time period. However, when the payment restarts, clients need to repay that amount of money with an added interest rate. But no matter what, it is an amazing solution if you cannot make your mortgage payment on time.

Credit rating

Don’t worry about your credit rating if you have got in touch with your bank or creditor. As soon as you let them know about your financial situation, in their eyes, you become even more responsible as credit, mortgages repayment client. If you apply for a loan in future, you will still be considered as a positive candidate. Even if your credit rating has dropped because of the overall situation in the world. So don’t worry about it but let companies know about your financial situation beforehand if you need to. 

Borrow online

If your financial situation already doesn’t look great and you don’t know when it’s going to be the next time you will get paid. Online loan maybe will not be the right choice at this time. Borrowing online should be the last resort for your financial stability. Only when you don’t see any other way, then consider applying. Monily will try to help you with our best intentions. However, we wouldn’t advise borrowing if it can cause more damage than good to your finances in future. 

We hope that these tips can help you or give you an insight into what to do when you are at the dead-end with your finances.