The Covid-19 pandemic has placed a great amount of stress and uncertainty on everyone. There are concerns around job security, a global recession, physical health and overall financial wellness.
With so much to worry about already, you should do whatever you can to avoid developing debt stress syndrome. Stressing over your finances can put you under more pressure which could lead to a compromised immune system, making you more susceptible to illnesses – and given the violently contagious Coronavirus pandemic, you want to keep your mental, emotional and physical health in top form.
While you can’t personally control the global impact of the virus, nor the state of the economy as a result of the Covid-19 disease; you can start by getting a better handle on your own financial health.
Make a list of all your existing debt. This includes personal loans, car loans, home loans, short-term loans and all credit card debt. Being organised during the process will go a long way towards alleviating your stress as you will start to feel more in control of your finances. Consider using a file where you can keep all your debt-related documents, or create a folder on a computer to store all your documents should you prefer. This will allow you to make changes as you work towards becoming debt-free.
After writing down all your debt, you need to dig deeper into your finances. Before you can prioritise your existing debt, you need to examine them thoroughly. Work through your list of debt and gather as much information as possible regarding all of your debts. It is important to be accurate and specific when putting this list together.
There is a difference between good debt and bad debt, but when your debt gets out of hand and you struggle to meet your repayments, then they all become bad debt as this will have a negative impact on your credit health report.
Prioritising your debt is an essential step in preventing yourself from feeling as though you are drowning in a sea of debt. There isn’t a wrong way to prioritise your debt and how choose to prioritise your debt is up to you, however here as some suggestions to guide you through the prioritisation of your existing debt.
There are a number of debt management options that can offer you debt relief and improve your financial wellbeing; one of which is to consolidate your debt.
Consolidating your credit cards or personal loans can help you streamline your debt loans into a single more manageable debt consolidation loan. When you consolidate your debt, you are combining all your credit cards and loans into one, which means that you only have one credit provider that you are borrowing money from, with a single monthly payment to worry about, and usually at considerably lower repayments than what you were originally paying when you had to pay multiple creditors with varying interest rates.
If debt consolidation sounds like an option for you to consider, you’ll need to begin searching for the best debt consolidation option to meet your needs. This requires some time on your part as there are many companies which offer this service, some are good – and some, not so good. Be sure to take time to fully research a credit consolidation company prior to doing business with them.
Whether you are under financial pressure, or simply aspire to live a debt-free life, it is always good idea to you know that you are in control of your finances, rather than feeling as though your finances are controlling you.
Take control of your financial wellness, improve your credit health and start your journey to becoming financially stress and debt free.
If you are struggling with debt management, contact Bayport Financial Services to discuss the debt consolidation loan options available to you, or visit Bayport if you are ready to apply for a loan now.Go back