The COVID-19 crisis has affected everyone whether financially, socially, or health-wise. It continues to transform our world and it’ll certainly leave its mark on our economy once it’s all over.
But, if there’s one thing that’s more difficult than ever it’s managing personal finances in a world with rapidly changing external forces.
The future has become near impossible to predict, making it difficult to plan for the long-term.
The good news is there are still a few things that you can control to keep your firm and your own personal finances in order and maybe even improve your financial situation.
- Lower the Cost of Car Insurance
Vehicle insurance companies in places like companies are starting to reduce vehicle insurance rates or at least introduce rebates in order to reflect the fact that people are driving less now due to stay at home orders and less social engagements to drive to. This means that car accidents are less likely to happen.
If you’re not sure about whether or not your provider is planning something similar, take the initiative and ask them.
For instance, if you have two cars but only use one frequently, you could cover the parked vehicle for theft and fire only. This can significantly reduce your monthly premiums.
- Consolidate Your Debt
A growing number of banks and businesses are willing to defer payments in order to give consumers some breathing space during the coronavirus crisis.
Unfortunately, the credit card companies don’t seem to have gotten the memo because interest on consumer credit cards has gone up since the beginning of the year.
That’s why it might be a good idea to consolidate debt instead and benefit from the lower interest rates that this confers. You’ll have lower monthly payments to deal with while remortgaging can enable you to access lower mortgage rates.
Call your banker and find out what your options are, or try out Big Law Investor to maximize your financial future with a more comprehensive strategy.
- Remortgage Your House
Ever since the coronavirus crisis started, we’ve seen a reduction in mortgage rates to alleviate financial strains on citizens who might find themselves either out of work or with reduced working hours.
Why not take the opportunity to compare your current mortgage rates with what’s available so you can work out a solution with your lender that would allow you to narrow the gap?
You never know, you could go from 5% to 2.7% over the course of a phone call, and there’s no telling what refinancing can do for your personal short-term financial future.
- Try to Save Up
Lifestyle programs and social clubs like gyms have suspended payments for the time being.
But, if you’re still getting payments deducted then you might have to cancel your membership or suspend it manually by giving them a call.
You could always resume when life goes back to normal, but no-one knows when that will be.
The best way to keep track of your monthly payments is to check your bank statement or credit card statement with a permanent marker in tow so you can cross out all of the unnecessary services. That way, you can cancel them all at the same time.
Lastly, make use of customer loyalty points. They were created for times like this.