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The year of 2020 has proved challenging for many reasons; enduring lockdown for our physical well-being, many businesses going under, the loss of jobs, and financial worry. We’ve all experienced the strain and worry of not having enough money to pay the bills. Many of us may be struggling to pay off debts that have arisen because of COVID-19. Now that we’re entering a new normality, it’s time to get finances back on track – but how? Take a look at these tips for clearing your debt post pandemic.
Speak to your providers
One of the benefits of Coronavirus is that it’s happening to everyone. Providers of your gas, electric, water, and even things like your phone bill are going to be much more sympathetic to your situation. If you’re struggling to pay your bills. Or perhaps you’ve missed a few payments. Give them a call to see how they can help you bring that number down. Why not use this opportunity to use your haggling skills to land yourself cheaper tariffs. To prevent this from happening again in the future? The simple fact is that providers will want to keep you as a customer to protect the business. So they’re more likely to offer a cheaper deal.
Keep your debt in one place
You’ve probably heard about debt consolidation companies that can help keep all of your debt in one place. So you know what to pay and when – but why use them? Essentially they’re giving you a loan to pay everything off and then you owe them money. Cut out the middleman and consider taking out a loan. So that you can clear multiple debts and simply owe one lender. Remember to keep in mind that taking out a loan could affect your credit score if you fail to make payments. So make sure it’s the right decision for you.
Cut back on luxuries
It’s easy to become accustomed to the luxuries in your life. Such as your Netflix subscription or your gym membership, but could you live without them? The answer is yes, you probably could! Cutting back on luxuries that you don’t really need. That you’re happy to go a few months without will free up much more of your income to help keep debts at bay. Go through your bank statement and see what luxuries you can temporarily eliminate. You’ll soon find that your debts are much easier to pay off.
Get on top of your finances
Finally, being a little sloppy with the control of your finances might have been the reason you got into debt in the first place. So here are some easy tips to stay on top of them in the future:
- Know exactly what’s going out and when
- Keep receipts and cross check them with your bank statement
- Be a little thrifty and save yourself some money when you can – clipping coupons are great for this.
With a little consciousness and smart spending, you could soon pay off your debt – even in a post pandemic world!