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The Threat of COVID-19
The threat of death and sickness brought about by the COVID-19 pandemic has pushed the entire world to a standstill. As the confirmed cases keep racking up each day, fear has taken over the world—thus pushing the global economy into a steep decline.
While the entire world is left waiting for the roads to become safe again, many businesses find themselves unable to continue, ending with a massive shutdown of businesses all over. This places many individuals without a source of income, placing the fear of foreclosure and piling debt straight at the forefront of everyone’s mind.
1. Seeking Help In The Time of the Pandemic
Although the entire situation seems hopeless, giving in to despair will only assure the loss that everyone is fearing. Seeking help in these dire times is still the best option, as even creditors are facing the same problems.
To paint a clearer picture, here are some tips to follow and take note of before approaching a creditor for financial assistance and debt relief.
2. Consider the situation
The most important factor to consider here would be the current situation of an individual’s finances. This will also be one of the first things a creditor will look for, which is why it’s essential to get all the facts in place prior to approaching one.
One of the best approaches to this would be to outline all the current monthly expenses and cross-reference them with the current finances on-hand. By assessing this through the lens of money flow, one could determine which are necessary and unnecessary.
A simple assessment such as this can easily take off a bit out of the overhead. Although this won’t be the immediate solution, this basic move can ease an individual’s finances by a great deal.
3. Increase Cash Flow
Aside from the current financial status of an individual, a creditor will also look into the inflow of cash of an individual. While it is understandable that the COVID-19 situation has affected the jobs of many, it’s still crucial to find a way to keep the money flowing into a household—no matter what it takes.
After all, even if a creditor gives a reduction or some relief, this won’t help at the end if no lifestyle change is made. If the creditor doesn’t give the option for reduction, this will at least grant the individual a plan to keep their lives going despite the COVID-19 situation.
Set a Time-Line
When setting up plans, it’s crucial to keep in mind a certain time-frame. While it’s great to be optimistic, a person’s financial plan should surpass the length of the pandemic, regardless of how long it takes. This way, a creditor can better assess how much they will be affected by the request, and if they can adjust their own rules for the requesting party’s sake.
The Bottom Line
As troublesome as the COVID-19 situation is in this age, it’s crucial to have contingencies for finances just in case it lasts longer than expected. By acting early, a bigger crisis can be averted, while giving enough time to adjust as the months go by.
Looking for a debt relief solution in this current situation? Get in touch with DebtHelpers.ca now! The team in Canada is committed to helping clients achieve the best financial life.