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6 Unexpected Ways to Cut Debt, Lower Bills and Secure Your Future During The Pandemic

July 14, 2020

6 Unexpected Ways to Cut Debt
The pandemic has feeling uncomfortable in more ways than you. But instead of feeling completely helpless, below are a few unexpected tactics to be more proactive.

The crab gets us feeling uncomfortable in more ways than you.

The prospective seems unsure, and now we ‘re waiting to see just how things will stand out.

But, rather than feeling completely helpless, there are a couple easy, unexpected methods it’s possible to be proactive – to take action to repay your debt, reduce your invoices and secure your own future.

1. Quit Paying Your Student Loan Debt

If you will need some space on your budget to deal with pressing monthly invoices or wish to repay some higher-interest debt, then you can quit paying off your student loans.

You believed that you ‘d never ever see the day, correct? Nevertheless, the federal government handed the CARES Act, which suspends interest and payments on national student loans before Sept. 30.

Of course, this doesn’t cancel out those payments. You’ll still owe the money. But because you’re not getting charged interest, this could be a good opportunity to put this monthly payment toward more pressing bills. You could also take the money and put it toward your car payment or pay more on your credit cards, which hold higher interest rates.

This six-month pause is automatic, but be sure to double-check your account and make sure your amount due reads $0.

2. Tell Your Car Insurance Company You’re Not Driving as Much

Did you know some car insurance companies are offering refunds? Yup – they’re handing out credits, mailing checks and depositing money back into customers’ bank account since people are driving. This could provide you a bit more breathing room in your budget at the moment.

Here are a couple of large companies doing so:

  • Allstate is refunding 15 percent of yearly premiums from April and May.
  • Geico is providing a 15 percent credit to clients finding or buying new coverages in the middle April 8 and Oct. 7.
  • Liberty Mutual will repay 15 percent of premiums for 2 months and quitting late fees.
  • USAA provides a 20 percent charge on two weeks of premiums.

If you overlook ‘t see your insurer on this list, don’t hesitate to reach out. Inform them that you ‘re driving, and inquire whether it’s offering refunds for its clients.

3. Expand Your Family $1 Million at Life Insurance For 5/Month

While you’re taking a share of your cash along with your monthly debts, you likely can’t help but consider how overwhelming it’d be for your family to handle these if you weren’t all around. How can they manage the mortgage? The children’s schooling? The bills?

Now is a good time to start planning for the future by looking into a term life insurance policy.

You might be thinking: I don’t even have enough time or cash for it. However, you may be amazed to listen to your program can take moments – and you may leave your family around $1 million with a firm named Bestow.

Rates begin at only $5 per month, but also the reassurance of knowing your household’s fiscal future is cared for is priceless.

If you’re under the age of 54 and wish to obtain a quick life insurance quote with no health examination or perhaps leaving the home, obtain a free quotation from Bestow.

4. Consult Your Electric Company For a Discount – Even if You’re Using More Energy

At this time, a lot of us are spending more time in your home, which likely means that you ‘re using more power and therefore are bracing for a greater bill.

But here’s some fantastic news: Some electricity companies are decreasing clients ‘ bills because fuel costs have been lower. For instance, Florida Power and Light plans to reduce residential bills by 25% beginning May 1. Duke Energy Florida is also temporarily reducing bills.

Even if you haven’t learned in the electrical company, it doesn’t hurt to reach out. Give them a call and see if they’re offering any refunds or discounts.

5. Strike a Deal With Your Credit Card Company

If you’re struggling to keep up with your monthly bills, it might be time to call up your credit card company and strike a deal. You don’t need to allow your credit card debt obtain away from you now – these high rates of interest can really send you into a spiral.

Many organizations are providing temporary aid, therefore reach out to an issuer. Despite the fact that you sit on hold (wait times are more than ordinary nowadays ), discover which sort of relief can help you.

A couple of matters that you could request include: Waiving late penalties, waiving interest rates, decreasing monthly payments or decreasing interest prices.

Of course this probably can’t be an “eternally ” thing, but ask for three months of relief. It could save you a ton of money.

6. Ask For Help

If you’re in a particularly dire situation and want to avoid emerging from this pandemic tens of thousands of dollars in debt, ask for help.

Sure, many of us would rather do everything but ask for help, but these are unprecedented times, and life’s a little bit out of our control right now.

For example, if you’re struggling to make your mortgage payments, reach out to your lender. Sure, foreclosures and evictions aren’t enabled right now, however your account may still obtain pushed into collections and you might still face penalties.

You may need to give evidence that you simply already been paid off or require financial guidance, but it never hurts to inquire about your aid options.

This similar notion could be applied to someone of your other bills – rent, utilities, mobile phone and car payments.

Just inquire.

Carson Kohler ([email protected]) is a staff writer in The Penny Hoarder.

This story originally ran on The Penny Hoarder.