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Managing Debt After COVID-19 Related Job Loss

The global COVID-19 pandemic has brought with it job losses for 20.6 million Americans* since mid-March, which has resulted in the highest unemployment rate since the 1930s when The Great Depression hit.

If you’ve lost your job, or are suffering financial hardship due to coronavirus, there are some practical steps you can take to get some support and financial help in these toughest of times.

Effective Debt Relief provides assistance and advice on how to cope with job loss and managing debt by helping those who are affected by consolidating debts into a more manageable single payment.  We will take your debt and work with your creditors to tailor a plan designed to reduce your debt immediately.

It’s important to know your options if you are in debt or have recently become unemployed. Here are some additional ways in which to get support if you have suffered financially or are concerned about mounting debts due to COVID-19.

Speak to your creditors

One of the first things we advise anyone who has suffered a financial setback to do is speak with their creditors. It’s natural to feel anxious or embarrassed about financial issues, but by contacting creditors they may be able to offer ways to help lower your payments.

If this feels overwhelming, Effective Debt Relief is on hand to help you negotiate your debt. We can work with you to repay creditors, reduce interest payments and consolidate your debt into a manageable monthly payment.

Our debt counselling service will evaluate your financial situation to help you make a fresh start and get your finances back on solid ground.

Help from the US Government

In response to the financial hardships caused by the pandemic, many families may qualify for additional support with food and bills. 

The government has also made it easier to access meal programs such as additional funding for food stamp recipients and made provisions for parents to access school meals for their children to eat at home.

Those people in a vulnerable group, such as seniors, those with additional needs and pregnant women are now able to enrol in food programs remotely, rather than in person minimizing COVID-19 risks to these groups of citizens, while helping them to access the support they need right now.

Prioritize your debts

If you have several debts, we understand that it may feel overwhelming to try to manage them all, which is why prioritizing your debts is a sensible option. Some forms of debt such as your mortgage or rent should be addressed first to ensure you keep your home. Any outstanding fines or child support should also be a priority.

Effective Debt Relief can help to prioritize your finances with our proven debt restructuring solutions. They are designed to aid you in taking back control of your finances and to repay your debts at the lowest cost and as fast as possible for a debt-free future.

Take a closer look at your spending

Even the smallest savings can help towards effective relief from debt. Take some time to assess your income and expenses and make a budget for your spending.

You may see patterns emerging, such as purchasing a daily coffee, and be surprised at just how much is spent on these items.  Once you see your spending habits in black and white, it becomes much clearer to see where small cuts can be made, which can add up to big savings in the long run.

Take the first steps to becoming debt free

A sudden change to your circumstances, such as COVID-19 related job loss can leave you struggling to make payments and it may feel as if you are running out of options.  But professional support is available when you contact the team at Effective Debt Relief.  

We’ve helped over 29,000 customers who have suffered a financial setback to recover from debt, with our range of options including debt counselling, a personal consolidation loan or our debt reduction program which can be tailored to your personal circumstances. Call Effective Debt Relief today on 800-940-5449.

*Source: https://www.cidrap.umn.edu/news-perspective/2020/05/us-job-losses-due-covid-19-highest-great-depression

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