7 Tips to Manage Your Finances During The COVID-19 Crisis

The primary concern during the COVID-19 crisis is to stop the spread of the virus and to save lives. While the government and healthcare professionals are on the frontline in this battle, everyone is encouraged to play their part through social distancing and the wearing of masks and gloves, among other measures. Apart from health concerns, the economy and people’s finances have not been spared by the global pandemic. This has made it necessary for people to explore fresh ways of managing personal finances. You can take a few measures such as resorting to digital payments and avoiding the use of credit cards to manage your finances and reduce the negative impact of the pandemic. Continuing on the topic, in this blog post, we present seven tips to help manage your finances during the COVID-19 crisis. Take a look.

1. Pay off Outstanding Debts

Accumulating debts is never a good idea especially during this global pandemic. Whether it's a credit card EMI or any kind of mortgage, accumulating outstanding debts negatively impacts your repayment capacity and ultimately your credit score. Loans on credit cards have higher interest rates which is the reason why it makes sense to pay off your outstanding credit card debt. You can do so by taking a personal loan through a money loan app that gives you low interest rates and flexible repayment tenures. You also have the convenience of transacting from the safety of your home.

2. Check for EMI Moratoriums

If you have pending EMI payments, you can opt for EMI moratorium service offered by many banks. Even the government has advised financial institutions to go easy on debtors during the COVID-19 outbreak. If you don’t opt for EMI moratoriums and still fail to pay your EMIs as and when they are due, your credit score can take a bad hit. Either pay on time or opt for an EMI moratorium to maintain a good credit score in case you need to apply for a loan in the future. You can contact your bank to discuss the process of the EMI moratorium.

3. Keep an Emergency Fund

Emergencies come without any warning and it is important to be ready for one, especially during this crisis. Maintaining an emergency fund can help in a big way in the event if you have to deal with an emergency. You can maintain an emergency fund by cutting unnecessary expenses, maintaining a budget, and even applying for a loan through a money loan app such as KreditBee.

4. Resort to Digital Payments

Given the current circumstances and the need for social distancing, it is advisable to prefer digital payment methods over cash. Many banks are encouraging their customers to go digital by preferring online banking for transactions and payment apps. It is advisable to pay your bills using digital mediums as they allow you to stay in the comfort of your home and avoid exchanging banknotes. Even when applying for a loan, opt for a money loan app, and the money with be transferred directly to your bank account.

5. Refrain from Panic Buying

During the COVID-19 crisis, the government is helping people by providing food items and groceries for free or at subsidized prices. Despite the personal finances of many people taking a hit, there is still a tendency to engage in panic buying for one reason or the other. You must refrain from panic buying as it can deprive others of having enough essential items. Essential supplies will continue to be available as an apocalypse is nowhere in sight. Buy only those items you need and don’t give it to rumors from doomsayers.

6. Check for Health Coverage Benefits

It is always advisable to have health insurance especially when the world is battling a pandemic. The basic purpose of health insurance is to provide financial support in times of medical emergencies. Check your health coverage plan and figure out how much it will help you in the unlikely event that you or a loved one falls sick from COVID-19 or any other illness that requires medical attention.

7. Avoid using Credit Cards

Another way to maintain stability in your finances is to avoid using credit cards and instead, pay cash or opt for a loan through a money loan app in case you need financial help. Credit cards charge high-interest rates when compared to personal loans. Instead of turning to a credit card every time you need to pay for something, practice financial discipline to avoid putting yourself in a fix.

Wrap Up

Managing personal finances can be difficult, especially during a pandemic. The above-mentioned tips will go a long way to help you manage your finances during the COVID-19 crisis and lockdown.