As the days and months go by, people’s concern about coping with the economic crisis generated by the pandemic increases
Photo: Shutterstock
The financial challenges that the pandemic imposes are leading the people to despair , because what budgets are at the limit and the scarce resources that remain complicate the to be able to face this situation of economic emergency .
The Yahoo! Finance notes that a Facet Wealth study reveals that approximately 1 in 5 Americans are considering carry out any risky financial measure in the coming months.
According to the information the 18% plan to incur more credit card debt , other 17% plan to back in your retirement savings and 17% consider that they could resort to borrow money from family or friends .
These measures can provide immediate relief , but they also have the potential to seriously damage personal finances long-term.
To face the situation it is recommended take the following measures :
Reset the budget
List in a spreadsheet all your monthly expenses and identify those that are not essential and that you can eliminate by the moment. It may be a subscription service that you don’t use regularly.
Try reduce the cost of essential products and compares prices of stores and supermarkets. The same can be done with car insurance and save more than $ 1, 000 dollars per year .
Refinancing of credit card debt
Interest rates on credit cards can be extremely high, more than 20% in some cases . If your credit history allows it, you can possibly change the debt of your high interest credit card for a new loan at a much lower rate .
With a loan of debt consolidation you can pay all your current debts immediately and only make a monthly payment at a more affordable interest rate , saving thousands of dollars in interest payments.
Refinance the mortgage
If you are a homeowner and you have not recently refinanced your mortgage , you may be able to save a lot of money exchanging your current mortgage loan for one of today’s offer rates . Mortgage rates continue falling more and more , have reached historic lows 17 times in 2020 . Do not forget compare the offers existing in the market.
Please use a price checker when shopping online
Download a free browser extension to instantly compare prices of everything you buy with thousands of products from other online stores . Installation only takes a few seconds and you can reduce your purchase invoices online at hundreds of dollars this year .
Financed with retirement savings
Before starting to raid the retirement fund it is very important to look for Professional advice. Withdraw money from retirement accounts before 59 ½ years , is subject to a heavy fine of 10% in addition to the payment of income tax
.
A certified financial planner can help you make better decisions, will analyze your situation
, your options and will develop a personalized plan for your future that does not affect more than necessary your life savings .
Consider that some banks provide planning services financial complementary, inquire if you are eligible for a free consultation . Another good option is the online financial planning services , with they can save you a good amount of money and you will have access to tips by email or video chat at any time.
You may also like:
Why experts recommend not buying these 8 foods at Costco
American woman retires, goes to Mexico and today lives in luxury compared to the beach with only $ 1, 000 dollars per month
The third $ 2 stimulus check is already being talked about, dollars: when could it arrive
