Many businesses have had to temporarily close as a result of covid-19, which has resulted in many people having to survive on a reduced income. Here’s how you can continue paying the bills while earning less.
Talk to your creditors
Many lenders, energy providers and insurers have been offering discounts and payment delays to customers over the lockdown period. However, in order to get these discounts and payment delays, you may need to call up your creditors and discuss your situation. Some people have already been making the mistake of simply not paying their bills, hoping that they’ll be let off due to the virus. Many creditors won’t be sympathetic to your cause unless you give prior warning – miss a payment without telling your creditors and you’ll still likely be charged late payment fees.
To help make your payments, it could be worth temporarily cutting back on a few everyday expenses. Lockdown restrictions have meant that less people are going out – so you may find yourself saving some money on things like fuel and eating out. However, you shouldn’t make up for this by ordering more takeout or buying unessential items online. Create a weekly food budget and stick to home cooked meals if you can. Try not to buy anything that you don’t need out of boredom.
Take out loans with caution
A loan could give you money to live on and pay the bills, however getting into debt isn’t ideal (especially when none of us really know how long this is going to last). If you do need to borrow money, spend your time shopping around for the best interest rates. Some lenders have been offering interest-free loans, mainly to aid small businesses.
Consider what you’re legally entitled to
A number of relief schemes have been set up by the government including federal loans for small businesses, paid sick leave, food aid and extended unemployment insurance. It could be worth looking into these if you haven’t already. You may also be able to use an attorney for coronavirus to gain legal compensation if you have fallen ill as a direct result of someone else’s negligence (this could be an employer or an associate that you were in contact with).
Ask friends and family for help
You may also be able to ask friends and family for help. Some people are likely to be less affected by the virus and may be continuing to receive a steady income. These people may be willing to offer support if you reach out to them. This could include lending you money or directly paying off some of your bills. Don’t be too proud to ask for help – given the circumstances, most people will be sympathetic.