As an inevitable result of this terrific pandemic Covid 19, financial crisis has now became a common issue, ruling over the whole world. The insufficiency of money turns up the fire of poverty which destroys peace of mind and make one puzzled. In such a scenario, to cope up with the situation and get back to the previous state is very difficult.
But one should not lose hope as it is the only thing that can keep you alive till the end. So, here we will discuss about the ways to overcome a financial crisis.
Start pay using cash:
With the advancement of technology, nowadays we are habituated with online payment mode. It is hard to remember the last time when one paid by using hard cash. Using online payment option is one of the primary reason which brings in a financial crisis.
Because, during the payment through online mode, the tendency of using credit card becomes high. Now by paying the whole amount through credit card ultimately enhances the debt part. Every month one has to repay a particular amount with addition of extra interest amount.
Therefore, stop using credit card or other online payment option and pay by cash. It will lower down your expenses too.
Put a stop on borrowing habit
Online payday loan can be borrowed easily. But one should understand that personal loans are as good as bad debt. In order to get vogue many newly opened financial bodies now granting even payday loans very quickly to both their existing and new customers. By lending money a financial body generates revenue for his company.
This type of loan is associated with high rate of interest which you have to repay every month with the principal amount. After borrowing money if you are unable to repay the amount then you will be a defaulter and the credit score will go down. So, stop borrowing short term loans as they are misleading.
Keep a track on your expenses
Almost every one of us are lacking with the habit of tracking the regular household expenses. This is another reason which brings financial crisis. In order to save money one needs to balance the expenses. From the beginning of the month the budget should be planned and the expenses that are yet to initiate should be jotted down.
After practising this habit for one month, you will be able to find out where you have spent more and where to curtail down the expenses. With little improvement on the budget one can save more.
Get ready with the available funds
It is hard to predict when and how the moment of crisis arise. That is why one should always keep him prepare with the availability of funds. For this reason, instead of selecting long term investment one should think about some short term investment. Like, one can continue the savings by keeping money in his cash accounts, or can invest in money market as well as short-term investment.
This type of investment will work at the crisis because the funds can be easily accessible.
Make use of the coupons and get discounts
To increase the usage of online payment now, most of the companies provide lots of coupons and attractive discounts. To avoid financial crisis, one just need to make maximum use of them. By paying online may be you have earned lots of coupons. The time has arrived to use them.
If you fly frequently then you must have earned discount cards which you can use for travel. Look for the discounts in grocery bills too. Gift cards are the best option to recharge the mobile and also paying the utility bills. So, search for if you have any gift cards or not. Moreover, by redeeming the credit points one can easily make up the inadequacy of money.
Repay the credit card outstanding
While repaying the credit card outstanding every month, a regular monthly expense is carried out. Besides, even after repaying the credit card bill punctually, one can found no changes in the outstanding amount. Because only one third of the repayment part contributed to the principal amount.
So, to overcome a financial crisis it is better to repay the outstanding at once, if possible. This will minimize at least one of your debt.
Earn money by selling
If you search, it will be not so difficult to find out many belongings of you which now are in no use. To earn some extra cash let’s make use of them. In Ireland there are many websites where by registering yourself it will be easy to sell those unused things.
By selling those things you may earn small amounts but this trivial amount can wipe out the financial problem to some extent. Apart from selling one can try out other type of job too like babysitting, freelancing or teaching as a tutor.
