The COVID-19 outbreak is continuing to impact people across the globe. Many are being forced to stay home from work, sometimes along with children whose schools have closed, and some have even been laid off.

Original content sourced from: www.tlcloans.com

The COVID-19 outbreak is continuing to impact people across the globe. Many are being forced to stay home from work, sometimes along with children whose schools have closed, and some have even been laid off. With so much uncertainty surrounding the situation, it’s inevitable to have major financial concerns, especially if you’re in debt. While this time is going to be tough for everyone, there are still smart financial moves to make, and avoid, so that when the crisis is over, you’re not deeper in the debt hole.

1. Contact You Lenders, Loan Services, and Debt Collectors 

If you’re unable to pay your bills at this time, you should contact your lenders and servicers immediately to let them know about your situation.

Financial institutions may be able to offer different options to help you, such as waving certain fees, overpayments, etc. They may even be able to go as far as delaying, adjusting, or skipping payments.

When contacting your lenders or collection agencies, be prepared to explain:

• Your situation
• How much you can currently afford to pay
• When you’re likely to be able to restart a regular payment

2. Look for Opportunities to Cut Expenses 

If you’re worried about your general level of cash flow during the outbreak, as most people are, it’s smart to start cutting expenses. With quarantine, the usual suspects might not be practical, such as Netflix or other streaming services. However, there are many other ways to cut costs during this time without completely depriving yourself. For example, making the majority of your meals at home instead of eating out (although states have started closing restaurants and bars).

3. Be Aware of Scam Attempts

There’s always scammers looking to take advantage of people in vulnerable situations. This is only more true during crisis, emergency, and natural disaster. Beware of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.

Here are the FTC’s warnings about scammers:

• Don’t click on links from sources you don’t recognize
• Ignore emails claiming to come from the Center for Disease Control
• Avoid online offers for vaccinations or treatments
• If someone is asking for donations in cash, gift cards or wiring money, stay away!
• Beware of “investment opportunities” in any company claiming that it can detect, prevent or cure coronavirus.

4. Consider Personal Loans for Debt Consolidation

Interest rates have plummeted during the COVID-19 outbreak, resulting in some of the lowest borrowing costs in history. If you have a lot of high-interest debt, you may want to consider borrowing a personal loan for debt consolidation. Debt consolidation involves combining what you owe into one lump payment with one interest fee. You then receive a loan to pay off all existing debt, and in turn make one monthly repayment to the lender. A debt consolidation loan generally has a lower interest rate than the previous debts and allows you to pay off everything in one monthly payment.

5. Keep Your Head Straight and Stay Safe

The most important thing to remember during this time is that it’s not permanent. Yes, there is a lot of uncertainty about how long it will last and how bad it will get, but it’s important to stay calm. Panic can lead to irrational thinking and poor financial decisions, only making the situation worse. Stay smart and stay safe.