Managing Your Finances During the COVID-19 Pandemic

Anelle Valdes
Anelle Valdes

We never really thought we’d be here, did we? Most of us never truly thought we’d see the day when society basically shut down. Well, here we are, so… now what? That’s exactly what billions of people all over the world are asking themselves and at least a few others right now, and unfortunately, there really isn’t much of an answer out there other than, “We’ll have to see.” 

In the meantime, people’s finances haven’t stopped being a need and something that needs to be managed even though nearly every other aspect of life has.  What are you going to do about your bills? How are you going to stay afloat financially, particularly if this situation persists for months if not longer?  Would an online installment loan make sense right now, or are there other things you should also be doing?  

Wise Loan has been helping people all over the country for years with their financial difficulties, and we’d like to offer a bit of perspective with regard to what you could be doing to manage your finances during COVID-19. Take a look below and feel free to contact us if you have any additional questions.

Organize Your Income 

The first step towards any type of financial management involves organizing and specifically totaling your income.  You need to know what’s coming in every month before you can do anything else. That may be a fluid number for you right now, as millions of people are finding themselves out of work – particularly in the restaurant and tourism industries – and they are unable to go find another job because nothing is open, and they are not able to leave their homes.

If your income is and will likely remain the same for the undetermined duration of this situation, you should consider yourself fortunate.  If not, you should consider filing for unemployment benefits from your state to at least help you get by while you’re not able to generate income for yourself and/or your family.  If that’s not an option, then an online installment loan may be of help.

Prioritize Your Expenses

Everyone has expenses, and these types of expenses can vary wildly between households.  However, the prioritization of expenses is largely the same regardless of your specific situation.  Generally, these priorities for expenses break down as follows:

  1. Food/water/shelter/heat
  2. Clothing
  3. Transportation
  4. Monthly bills
  5. Other debt

Everyone needs food, water, and shelter, so you should start by putting a reasonable budget for that together and sticking to it for planning purposes.  Everyone needs clothing, but we don’t need new clothes every day, and transportation is vital, but not as much so while millions of people are living under shelter in place orders.  

Where things start to differ and become more flexible is with debt.  There are different types of debt, including mortgages, car loans, student loan debt, and credit card debt.  Figure out how much of each you owe and what that translates to in terms of payments. Then come up with a total amount of money you need to spend every month with everything listed above.  That’ll be your starting point for getting through this time period.

Reach Out to Creditors

The bottom line with creditors is that they want to get paid.  That may seem glib, but the reality is that if credit card account holders start declaring bankruptcy en masse, those credit card companies are going to suffer.  While student loans and mortgages are different types of debt with more security for the lenders in place, they also suffer if people start defaulting all over the place.  

It’s because of this that many of these lending companies are open to working with their borrowers when times get tough. Clearly, this is one of those times that qualify. A large number of lenders are offering different benefits to their borrowers that include:

  • Payment forbearance
  • Lowered interest rates
  • Payment forgiveness
  • Balance forgiveness
  • Lowered payments

Every lender is different, and every borrowing situation is different, but if you’re concerned about your debt, you need to reach out to every one of your creditors and find out what if any benefits are available to you.  If you can lower payments without getting hurt in the long run with higher balances, you should consider taking advantage of that opportunity. Every dollar matters right now with all of this uncertainty, so at least find out how you can help your own bottom line.  

Consider a Cash Infusion

Of course, even all the diligence in the world isn’t necessarily going to lead to a comfortable financial result for everyone.  Most people agree that because of the COVID-19 pandemic, the economy is going to take a downturn. While no one knows what exactly that means, it will likely mean that millions of people will be struggling.  Job losses, credit defaults and rising debts all create an ugly overall situation that can prompt desperation and depression.

Fortunately, there are options available for you that will allow you to avoid defaults and other serious, long-lasting problems that can destroy your credit.  Look into an online installment loan from Wise Loan.  We can have you funded within minutes and we can help you pay down those troubling bills that have been keeping you up at night.

Wise Loan works with a wide-ranging clientele, which means that you don’t have to be a professional banker to work with us.  We’re not concerned about your credit score, as we have bad credit installment loans available as well. A need for money is a need for money, and a credit score should not be a bar to resolving that need.

Regardless of your situation, we hope that you do what’s necessary to, above all else, stay healthy and safe from this coronavirus.  It’s a scary and sometimes-lethal thing, and we hope everyone does what’s necessary to defeat this ruthless enemy. In the meantime, please feel free to contact us if you need help with your finances.  We wish you the best.

The recommendations contained in this article are designed for informational purposes only.  Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.

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