While it is human to want to do something to fight or flee in the face of a dangerous threat, doing nothing in the face of historical volatility can be a challenge.
But you are not alone in this.
As the world grapples with the personal and financial constraints of the coronavirus pandemic, financial advisors are figuring out how best to help their customers affected by the health crisis and resulting economic devastation.
Cobalt Advisors Offers Finance Support When You Need it Most
It can be difficult to find and meet a financial advisor face to face, especially in times of crisis when it can be crucial to get help with money. This is why many financial advisors have switched to digital platforms to meet new clients, and digital tools allow advisors to stay in touch with their clients.
As businesses closed their doors and lay-offs spread across the country, finance firms like Cobalt Advisors have launched online campaigns to offer free personal financial advice to anyone struggling with the effects of the coronavirus pandemic.
Here are 3 ways to clear credit card debt during this trying time.
1. Debt Management Plan
In the midst of a pandemic, consultants create fresh financial plans for a new client and help the client cope with the effects of the coronavirus pandemic.
With a debt management plan, your credit advisor can reduce the number of payments you have to make each month.
In addition, they can negotiate with your creditor to:
- reduce the payment amount
- reduce your interest rate, or
- reduce your overall balance sheet.
Then you can pay the credit counselling organization a recurring monthly amount that it will distribute to your creditors.
By pooling your payments, you save yourself time, money and potential frustration and reduce your credit card debt.
If you really want to tackle your credit card debt, you should consider this method to get to your destination faster. Concrete repayment targets and strategies will help to keep them in check.
If you have difficulty paying your current bills, lowering your monthly payment obligations can be a big win for your budget.
2. Consider a Personal Loan
If you have high-interest credit card debt or have difficulty coping with multiple credit card payments, a personal loan is a viable option.
You can use the money you receive from your personal loans to repay your outstanding credit card balances. If you add new debt to your credit card, you risk digging yourself into a hole that you will have to climb out of later.
Deciding to apply for a personal loan can help you combine your credit card payments into a monthly payment.
If you have a good or excellent credit rating, it is possible to obtain more credits than you currently have with your creditors. When purchasing personal loans, care must be taken to compare the interest rates, terms and conditions of the loan and the associated additional fees and penalties.
Many personal loans offer flexible repayment terms that can help you choose a loan that suits your budget. Although you do have to pay interest, personal loan rates tend to be lower than credit cards, which can still help you save some extra money.
Some lenders also offer pre-qualification or pre-approval applications, which allow applicants to see if they can qualify before applying.
Consumers often use this option to afford higher expenses, such as debt consolidation or home renovations.
Financial Institutions will look at your income, level of education and other factors as well as your creditworthiness.
3. Fixed-Rate Loans
One way to deal with your debt quickly is to use a form of credit card debt consolidation. You can take out a fixed-rate debt consolidation loan while paying off your debt. Usually, these offer fixed interest rates that can help with your budget because your payments stay the same while you repay the loan.
Get in touch with your creditors to negotiate payment terms with them and push for lower minimum payments and lower APR (annual percentage rate).
You are Not Alone
And remember, you don’t have to do this alone. Debt regulators and debt relief firms are helping consumers settle or modify their debts with creditors. And non-profit credit counselling organizations are there to offer money management counselling and help consumers develop a budget, create a debt management plan and identify the primary cause of debt.
Wishing you all the very best as you pinpoint your primary cause of debt and create the perfect budget and debt management plan to finally clear your credit card debt forever.
This post was sponsored by Cobalt Advisors. This is one of the ways I monetize my blogs.
