In order to walk down a path of financial freedom, consumers have to take control of their debt. That’s been extremely hard during the COVID-19 pandemic. More than 25 million Americans were still collecting jobless benefits at the beginning of October. In February, the Federal Reserve released data showing credit card debt was at an all-time high. However, since the outbreak, that’s actually starting to fall. Not necessarily for everyone, though.
Many Americans are in a financial hole. That’s causing them to turn to their credit cards more often than they usually would. The concern is that they’ll fall deeper and deeper into debt. Obviously, that’s not a situation anyone wants to be in, but there are options if someone has a lot of high-interest credit card debt. Companies like Safe Path Advisors can help them right their financial ship.
Credit Card Debt Woes
Earlier this year, CreditCards.com released the results of a poll that found nearly half of all Americans have credit card debt. Twenty-three percent of respondents said the pandemic has caused them to add to their balances. Millennials are being hit with the increased debt harder than other age groups, with 34% saying they owe more money now as a direct result of COVID-19.
What Can They Do?
For those who have found themselves in a bigger hole than before, it’s important to get a handle on the situation as soon as possible. Before they tackle the credit debt, they can do a few things to make their financial situation a little better. After all, it doesn’t do much good to get rid of debt if the reason for the extra spending is still an issue.
Comb Through Expenses
The first thing anyone with financial problems should do is comb through their expenses and cut where they can. For instance, if they really enjoy lattes from Starbucks, maybe it’s time to invest in a latte machine instead. If they’re stopping for coffee twice a day, this is an investment that’ll pay off quickly.
Also, they should get rid of any subscriptions they haven’t used for the last 30 days. They’ll continue going through their expenses, shedding the dead weight, and then move on to the next step.
Make a Budget
A budget is critical for those who are trying to get their finances on track. All they have to do is write all of their expenses and goals down, plug in their income, and figure where the money is going each month. Seeing it in black and white can sometimes make sticking to it a lot easier.
Find Extra Income Streams
This is obviously easier said than done during a pandemic but if possible, finding extra income streams is a good idea. For instance, do they have a working car and like to drive? Applying for jobs at Grubhub or Lyft might be a great way to earn some extra money doing something they enjoy.
Freelancing online is also an option if they have a marketable skill. It can be both cathartic and help them dig themselves out of a hole.
Finally, after they have all of that in order, contacting Safe Path Advisors would be the next best decision they make. This company can help them consolidate their debt to make it more manageable. One reason people default on their payments is that they’re so overwhelmed by the multiple accounts they have to satisfy. Debt consolidation eliminates that problem.
The company can help them pay off their high-interest credit card debt and focus on paying one loan, often with a lower interest rate. This is incredibly helpful for people who are stressed about the debt they’ve accumulated.
Don’t Wait Until it’s Too Late
The economy will shudder a bit for the foreseeable future; we’re amid a global pandemic. But that doesn’t mean anyone needs to worry themselves over debt when there’s help available. Just don’t wait until it’s too late.