Over the course of the COVID-19 pandemic, millions of people became jobless. It naturally follows, then, that many of those millions have also entered into debt they didn’t have before the pandemic began. This is the sad reality of a global crisis; good, hard-working people wind up in difficult situations through no fault of their own.
If you have found yourself in debt due to a pandemic-related change of circumstances, you aren’t alone. Trying to strategize your exit from debt can be overwhelming, but with the help of this guide, you’ll hopefully start to see a way out of your situation.
Let’s begin: here’s how to strategize your exit from COVID-19 debt.
Search for jobs in industries that are booming right now.
While certain industries saw huge layoffs during the pandemic, such as hospitality and tourism, others began booming. Delivery services like Amazon, food delivery like Deliveroo, and the healthcare industry all took off in a major way. If you have lost your job in this crisis and are searching for an answer, look outside your regular industry.
While this can feel like a step back from your career progression, see this change as a means to an end. You can start to pay off your debts and take care of yourself and your family again – and when the time is right, you can transfer back into the industry you once worked in.
Contact charities that offer pro bono financial advice.
Financial advice does not come cheap, but luckily, there are plenty of advice services that offer appointments pro bono. Speaking with a financial advisor is the number one way to strategize how to get out of debt. Debt is a vicious cycle of increasing interest and chipping away at the problem – so with viable financial advice, you will be in the best hands possible.
Financial advisors can:
- Analyze your financial situation;
- Notice where you can begin to save money on certain expenditures;
- Help create a year, three year or five year plan for getting out of debt;
- Recommend lines of credit that are trustworthy and have low-interest rates.
Need financial advice for free? Find out more here!
Research debt relief schemes (with caution).
Debt relief schemes like those found at Safety Net Credit can be instrumental in helping a person get out of debt. However, these need to be approached with caution. Unfortunately, there are some highly convincing scams out there that will convince you of their legitimacy, take your banking details, and, well, you know the rest. More and more people are falling prey to fake debt relief schemes every year.
Here’s how to make sure a debt relief scheme is legitimate.
- Google the debt relief scheme you are looking into. Take a look at some reviews from legitimate website users, and take note of any reviews saying the scheme is fake or a scam.
- Call your local business bureau. This will allow you to question a legitimate source about the scheme you have been checking out.
- Try to contact the company behind the scheme for verification. If they have a very odd email address full of numbers, or if they aren’t contactable at all, this is a red flag.
If you are in COVID-19 debt, use this guide as a starting point for moving forward!