Debt and coronavirus
Debt during coronavirus what do i do for anyone struggling with debts, or for those with any financial concerns at all, the coronavirus crisis
could not have come at a worse time. Millions of people were, prior to the COVID-instigated lockdown, already worried about how much they were able to earn and save, and these problems have now been exacerbated.
And, what is perhaps worse is that there is no definitive end date on the horizon. Innumerable families are currently experiencing what is being referred to as ‘income shock’ – a sudden loss of funds that were at once unanticipated and impossible to resolve – and are now in the midst of a crisis borne of both disease and debt.
There is no hiding from the fact that this is a scenario that is by no means ideal, but it should also be noted that it is not insurmountable; there are solutions available, and while they will not provide an immediate end to any financial hardship you may be suffering, they can at least ease the problem somewhat.
However, let’s first take a look at the state of UK finance as things stand, and therefore better understand the difficulties that individuals, families and businesses are having to contend with.
The current state of the economy
Six months ago, nobody would have been able to predict the predicament we, as a species, are currently embroiled in. There are some stark figures and statistics coming out of the UK that highlight the scale of the situation as it currently stands; as many as half a million companies could collapse as a direct result of the pandemic, as many as one in four adults is currently furloughed, while others have been let go from their businesses as part of drastic cost-cutting measures.
However, while this period has resulted in widespread uncertainty, it has forced people to assess their financial situation. It has encouraged people that would otherwise have ignored their mounting monetary problems to face up to their difficulties and find a solution.
For those people, debt consolidation should be placed right at the top of their monetary agenda.
Debt consolidation as an option
One of the key issues involved with debt is that, very often, companies and banks do not want you to pay it off in good time. They want you to pay the minimum possible so that interest can be added, the money owed can increase, and they can keep you paying them for longer.
It can be enticing to only pay the minimum amount, especially when experiencing financial hardship, but it is important to realise that this is only likely to keep you tangled up in debt for an extended period of time. Also, having to keep tabs on numerous debts can be irksome at best, and financially crippling at worst.
Debt consolidation can help massively in this regard. By having all of your debts in one place, and by being fully aware of how much money you need to dedicate each month to ensure they are ultimately eradicated, you will be in a far better situation to tackle your financial burden. It may still take a long time for the debt to be whittled down to nothing, but you will be on the road to a more stable and secure financial future.
In these testing times, being on as stable a footing as possible is not only important monetarily, but can also play a huge role in benefiting your mental health and giving you peace of mind.