For most of us, the fallout of the lockdown is of tremendous concern. Although it’s unlikely that you’ll be able to escape this impact completely, the following tips may help to minimise it:
- Ask all creditors if they are able to offer any form of relief, whether that’s waiving interest or extending terms. The sooner you do this, the better, especially if you suspect that you may have trouble making payments.
- Reach out to your debtors, too. Although they are likely to be facing difficulties of their own, you may be able to come to an agreement – for example, perhaps you can offer a discount in return for immediate payment.
- Find out what relief may be offered from your bank. Are you able to take advantage of a payment holiday, for instance? Be wary of asking for a loan, however. This is not the time to be taking on more debt. Rather find ways to cut back on your expenses. Remember that you don’t need a debt holiday if you have credit insurance, which will pay your premiums for the next year.
- Investigate the packages made available to small businesses by government.
- Look for other areas to make savings. Your insurer may be prepared to offer reduced premiums because you’re driving less, and therefore exposed to less risk, for example.
- Remember if you have a loan and are battling to pay the instalments don’t look at a payment holiday as this will only extend your debt, rather use your Credit Life Insurance. This is an insurance banks already have in place for loan customers who are retrenched, receive short time or are placed on compulsory unpaid leave. You need to be up to date with your payments and you need to contact your bank to see if you are eligible to apply for the benefit. The insurance would then pay up to 12 months of instalments of the loan