The Price of the Pandemic: Ways You Can Improve Your Financial Situation Right Now
The coronavirus pandemic is hitting us all hard. Even those who are lucky enough to have avoided infection thus far. The death toll in New York alone has surpassed 1,000 while the state has around 45% of the nation’s 125,000+ cases. Many New Yorkers are without work, while even the lucky ones will face a reduction in income as they either work from home or are placed on furlough. With no clear end in sight, many are wondering how they will be able to afford to keep the roof over their head. These are stressful and uncertain times, to be sure. But it’s critical not to panic. Take a deep breath. Meditate. Think about some practical solutions to your problems.
If you’re worried about money, here are some things you can do to improve your financial situation right now.
Ask for a mortgage payment holiday
Whatever you do, you should take care to keep hold of your property! Panic selling would be a huge mistake. This doesn’t just go for your property but for your stocks and other investments. Panic selling in this volatile market will leave you with a meagre return which you’ll regret when the fog has lifted. Instead, ask your bank for a mortgage payment holiday. If you need it, you may be able to apply for a payment holiday on any other debts such as personal loans. However, think twice before doing this. A payment break will inevitably see you spend more in interest and prolong the debt.
Take advantage of low interest rates by refinancing
Speaking of debts, savvy readers will have learned that interest rates have, after a tumultuous few weeks, plummeted and stayed down. 30 year mortgages are in the low 3s while 15 year mortgages are in the high 2s. If you can spare a little extra in monthly repayments, refinancing now may see you pay a whole lot less in interest and pay off your home loan faster.
Take stock of your other assets
If you need fast access to cash now, it might be worth taking a look at other assets around the home that you can live without. That first pressing vinyl you bought in 1983. Those Star Wars figures you rescued from your Mom’s attic. Heck, take a look at your cellar. Have you ever wondered just how much is your wine worth? You may be surprised to know, especially when it comes to those prestige bottles you’ve been keeping in reserve. Selling off some non-essentials around the home can give you a little liquidity when you need it.
Resist the urge to panic buy
As important as it is not to panic sell, it’s also essential not to panic buy. The last thing you want is to plough liquid assets into more pasta than you’ll ever be able to eat and more toilet roll than you’ll ever be able to use. Stores will stay open. There’s no need to stockpile like there’s an impending nuclear winter.
Keep a cool head, take the time to learn the reality on the ground and keep a proactive approach and you’ll find that it’s possible to improve your financial situation and mitigate the price of the pandemic.
