The covid-19 pandemic has hit unemployed individuals the hardest as with no savings, they have not been able to prepare for the crisis. Yet, many professionals have found themselves unemployed or on furlough during the pandemic, making it hard to face increasing expenses.
Approximately 50% of the western population now carries credit card debts, which have increased as a result of the pandemic. What is more worrying is that in every country, the response to financial management has been the same. In North America, up to 40% of adults can’t afford to pay more than the minimum balance on their credit cards. In Europe, the figures are similar. There’s been a sudden spike in debts during the pandemic. But even if you’ve been careful with your credit card bills, facing payments you can’t make is an all-too-common situation. What happens when you can’t pay for the things you need?
Can someone else pay for me?
Facing unexpected bills is no walk in the park. Yet, there is help available if you ask. It’s not uncommon for young adults to reach out to their parents to manage their financial situation. Someone who is just starting their professional career may face a lot of expenses as they establish their independence. More often than not, the bank of mom and dad needs to kick in to save the day!
There are other situations where you can ask someone else to pay on your behalf, such as with bail bonds where you rely on a licensed bail bondsman to handle your bail fees. The debt isn’t canceled though; you’ll get to pay in due time.
Do eligibility criteria have the same weight?
When you face necessary expenses, such as linked to the purchase of a house or a car, the easiest approach to keep your finances under control is to apply for a loan. Yet, it’s easier to say than to do. Loan applications have unique criteria defined by money-lenders, which can make it hard to obtain the money you need. For instance, a lot of banks have high age limits, which could exclude younger borrowers. How can you secure a loan when you don’t meet all the criteria? This shouldn’t stop you from applying. Some criteria can be overlooked if others are met. Banks tend to reject young borrowers, not based on age but based on annual income and repayment potential. If you can prove that you have a solid income, you can document your payment history as part of the application. Some banks and money-lenders can also have less restrictive criteria! Take the time to find the best options.
Do I need to pay so much?
Not everyone is comfortable negotiating a good deal. Yet, if you understand how to negotiate a discount, you could be able to buy what you need without breaking the bank. It is reasonable to expect up to 30% price reduction on services or items. But, you can’t expect to cut the cost by half without good reasons!
How do you pay when you can’t afford it? There is more than one answer to the questions. More often than not, there are ways to get around financial obstacles and secure what you need. Yet just like with credit card debts, it’s unwise to get the things you need/want if you know you fail to plan future payments!