Many COVID lockdowns are resulting in people in worse financial situations than they were back in 2019. Many people who have COVID lockdowns are in worse financial health than they were in 2019. This has led to a rise in credit card debt.
If you feel like you need a financial overhaul, we can help. Here are some quick ways to eliminate COVID creditcard debt.
CREATE A PLAN TO GET OUT OF DEBT
The first step is to develop a plan about how you will tackle the debt load that you have. There are many popular options you could use, including the debt accumulation, but the debt snowball is often the easiest. In case you have any questions, here’s how the debt snowball works.
Don’t let all the options overwhelm you. Any strategy will work better than none. Select the strategy that suits you best and your way of life. It’s not a good idea to choose a payment option that makes things harder.
UPDATE UR BUDGET FOR THE POSTER-COVID W WORLD
You might have spent more during lockdowns on take-out and online shopping. You have the opportunity to review your spending habits now that the COVID restrictions have been lifted.
Check the past three to six monthly statements from your bank/credit cards to see which spending categories went beyond your pre-pandemic limit. Once you are able to see the patterns, you will be able to determine which purchases should be continued and which ones should be discontinued.
If you are unable to begin a new budget from scratch it is okay. To get an idea of how much you can spend to keep your finances afloat, begin by collecting all your monthly bills. Then, you can add a category for saving (especially if it isn’t an emergency fund) as well as for paying off debt. The money that remains can be spent however you’d like. You must change your spending habits in order not to continue to accumulate more debt.
BE PATIENT
Even if no one has lost loved ones due to COVID’s global pandemic, it was devastating for all. You had to deal with severe stress. If that meant more credit debt, so be that. Let go of past mistakes and put your best foot forward. Most likely, your debt did not accumulate all at once. It may take you longer to get debt-free.
