Financially, we are going through a difficult time for many people right now. Layoffs, closures, and reduced hours cause many people to struggle through no fault of their own. They feel helpless when the bills come in, and it can be hard to know what to do next.
Communicate with your creditors. Ask for concessions in times of difficulty, which could include paying interest only for the time being. They may be able to work with you to give you some time to breathe.
Contact your financial institutions. Many banks and credit unions currently offer aid and loans. You can also sign up for a hardship assistance plan, which would lower interest rates, fees, and penalties for some time. But be aware that backup plans can potentially impact your credit rating.
Communicate with utility companies and service providers. You may be able to defer your payments or reduce your costs by lowering the level of service on things like your cell phone or cable TV plans.
Adjust your budget. An emergency budget allows you to continue to track money coming in and out of your home, but it is adjusted to account for lower-income. By re-examining your budget, you will have the opportunity to consider where you might be reducing your “needs” so that you can meet your needs.
Negotiate a lower interest rate. If you must use credit cards, try to negotiate the lowest rate possible. Even if you only earn a few percentage points, you can save much money on interest over time.
Use community and government assistance programs. Check official government websites for the most recent information on government programs and specific benefits related to COVID-19. In Canada, visit the Government of Canada site; in the United States, visit the IRS site, and in the United Kingdom, visit the GOV.UK site. Don’t forget to learn about community resources, as well. Food banks can help you when you need to stock up on groceries, and places of worship often have various programs in place to help those in need. You should also check with your local government if they can provide you with information on community organizations available to help you in your area. I hope my article will help you know how to live in a tight budget?