Overcoming Financial Stress Caused By The Coronavirus Crisis

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Since the coronavirus outbreak, many people have been struggling with anxiety for a number of reasons. One survey that was conducted among Americans found that every 9 people out of 10 are dealing with financial stress. Reasons may vary in severity, but this global concern has been affecting our mental well-being. Some people who work in the service, travel or leisure industries are being laid off without any alternative source to earn money. Others are stressing over their inability to handle their finances and meeting their monthly responsibilities. These crippling times and the constant stress and anxiety we are living in have severely impacted our quality of life. If you want to reorganize your finances seeking the advice of a chapter 13 attorney in Harrisburg PA or similar is highly recommended. This will allow you to pay off your debts within 3 to 5 years. 

That is why we have collected some important tips to help you overcome financial stress and other negative feelings that this pandemic has caused.

Start with A Plan

Since many people depend on easy credit that they can pay off with their monthly income, many have found themselves drowning in debt without their regular paychecks. This situation needs a more practical solution that goes beyond just budgeting or cutting off some unnecessary expenses. In these situations, it’s better to consider taking out a personal loan that you can use to pay all of your debts off. In the UK, for instance, interest rates have been lowered. The options found at Money Trumpet personal loans give people a chance to manage their expenses in a way that is not overwhelming and is conducive to the current circumstances. If you are in debt to different entities, then chances are, you are paying interest rates to every one of them which could only pile upon your financial troubles.

Take Actions

No one can deny that this unforeseen event has taken its toll on our finances. However, the core of money struggles usually revolves around income issues, spending problems, or a combination of both. If you are dealing with the first problem and you are suffering from insufficient income, either because you have been fired from work or you are being paid less, then it’s better to start taking action towards solving this problem. You can either start searching for another job, consider freelancing, or a part-time second job to support you. The second issue is solved with some planning and self-control. To create a suitable spending plan, then you need to calculate the amount of money you have to pay every month for immediate expenses such as rent, mortgage, bills, food and water costs. After you have taken care of your monthly bills, you can dedicate 10 to 20% of your income to your savings account. This way, you will have peace of mind and a sense of security in case you need to have money to spend for whatever reason.

Cope with the Current State of Affairs

The financial distress caused by the economic impact of the coronavirus will affect your decision-making process greatly. You need to try to fend yourself from the shock and start accepting the current state of affairs to be able to protect yourself. Since there are a lot of things that are out of your control amidst the economic and social mayhem caused by the coronavirus pandemic, you’ll want to focus on the tasks, activities, and events that you can control. To get things in order, make sure you make a list of the resources that you own and can control.

financial stress

Avoid Risky Investments

While it may be tempting, going on the pursuit of fallen stocks based on the information you’ve read on a forum, it’s not a very wise way to stay safe from financial stress. Whether you have a lot of savings or not, you should not go around taking unnecessary risks on stocks, cryptocurrencies, or any other investments, especially when no one can tell when the economy will recover. This doesn’t mean that it can’t be profitable, but it will definitely be a total financial burden that you’ll have to carry to the end, making the financial stress you already have piled on worse.

Sometimes the reason behind the financial stress you are suffering from is the fear of the future and the uncertainty that people all over the world are dealing with. To eliminate these negative feelings and the constant worries you might be feeling, then it’s better to start putting a clear plan that will allow you to manage your finances. Sometimes, a budget isn’t going to help if you are swarming in debts. In these situations, you need to take calculated steps and practical actions to give you peace of mind and allow you to pay off your debt with easiness. For long-term solutions, then it’s better to start looking for a second job that will allow you to increase your income and let you live the life you want to.

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