Financial security amid COVID-19 pandemic
VICTORIA, Texas- Without a doubt, the Coronavirus pandemic has affected our daily lives and how we spend money as many face an uncertain future. Consumers cautions are reflected heavily on our economy. The stock market numbers are steady in the red as this pandemic unfolds. Financial experts tell us to take advantage of deferments made possible by the federal government. This can apply to car loans, mortgage, credit cards or student debt.
“There are things that you can do right now if you’ve been laid off, if your hours have been cut or pay has been cut. They (federal government) are allowing you to defer payments right now at no charge or penalty to you. Your loan, of course will continue. As of right now, unless a package comes out, to earn interest, but you can defer payments up to 90 days depending on the lender,” explains personal financial advisor, Michele Rohde.
It is advised to stop payments towards debt and maintain your budget solely to cover essentials that include transportation, food, shelter and utilities.
“Take a look at your personal budget, if you’ve never done that before, and you want to get it down to your four walls, Dave Ramsey calls it build your little safe house. Right now, just have your expenses be in regards to transportation, shelter, food and utilities, those are the only things you want to be spending money on, everything else is non-essential,” adds Rohde.
Advisors suggest that if you are invested in market stocks, consider keeping those, as this crisis is temporary. Experts are expecting a complete bounce back, some suggesting it can get back in shape within 120 days after a crisis is over.
Rohde says once the economy recovers following a crisis, it usually stays strong for a prolonged period of time.
To contact financial advisor Michele Rohde click here.