If you lost your job because of the pandemic, you likely accumulated a substantial amount of debt paying for necessities such as food and medicine. Finding a way to pay off those loans may seem overwhelming, but you can get out from under those bills. Here are some tips.
Consider Consolidating Your Loans
You can obtain one larger loan to pay off all the smaller debts you owe. It’s a smart move because you then only have to pay one bill each month, usually at a lower interest rate. Loan consolidation companies such as Priority Plus Financial will work with you to help you pay that debt off faster and improve your credit rating over time.
Think About Taking on a Second Job
Now that the pandemic is over, more jobs are available. Think about moonlighting for a few months so that you can get back on your financial feet. A remote job with a flexible schedule allows you to work from home in the evenings.
If you can’t work a second job because of family commitments, think about selling off items you no longer need either through Facebook Marketplace or eBay. You’ll clear out the clutter and make money at the same time. Use part of those funds to build up your savings account. Choose a new bank to maximize your savings with better interest rates. Utilize the proceeds wisely to strengthen your savings for future financial stability.
Build Up an Emergency Fund
Once you get a little extra money in savings, put some money in an emergency fund that you don’t touch except for things like a needed car repair or emergency medical bills. If you use money from your emergency fund, work on paying that money back as quickly as possible.
Create a Personal Food Pantry
Once you start working and paying off your debt, also work on building a personal food pantry. Anytime your local grocery store has a sale, buy extras of canned goods and other storable foods that you like. Try to have at least a six-month supply of extra food on hand.
Rotate your food on a regular basis, so that the older cans are toward the front of your shelves and the newer cans are in the back. If you don’t have room in your kitchen, store them in your garage or hall closet. You can even store extra food under your bed.
Getting proactive about reducing debt and saving money will help you build back to a stronger financial position than you were before. You’ll be stronger financially.
