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Income Loss Leaves More People Looking For Financial Lifelines

Income Loss Leaves More People Looking For Financial Lifelines

By    |   Friday, 08 May 2020 10:01 AM

Over recent weeks, huge numbers of people have found themselves facing financial difficulties as a result of the COVID-19 pandemic. The lockdown has resulted in millions of people being confined to their homes, and the situation has also resulted in the temporary closure of many businesses. Not only has this resulted in economic devastation, but it has also had a huge negative impact on the personal finances of individuals.

The closure of businesses has resulted in a lot of staff being temporarily laid off, with furloughing giving them only a percentage of their usual income. Many other people have been laid off altogether, forcing them into the unemployment queue. In addition, lots of smaller businesses may not be able to reopen once the lockdown is lifted because of the financial damage, which means many more could be facing unemployment over the next few weeks.

Worries Over People Struggling to Make Ends Meet

This unprecedented situation has raised concerns over how people will be able to make ends meet. Many have financial commitments such as mortgages or rent, bills, debts, and a variety of other essential costs that they need to keep on top of. However, without the necessary money coming in, many will be facing a dire situation.

There are options for those who are in desperate need of money to make up the shortfall on a temporary basis. For instance, some people may have emergency credit cards they can turn to, and some may be able to increase their bank overdrafts. For those who have bad credit that stops them from accessing mainstream borrowing, there are options such as fast online title loans where they can borrow against the equity in their vehicles.

However, there are also concerns that many people who do turn to borrowing could find themselves facing unmanageable debt levels. This could be made all the worse if they are unable to go back to work due to job losses and are unable to find a new job due to business closures and cutbacks. While the government has made payments to all adults across the country as part of the stimulus scheme, for many, this will not be sufficient to tide them over.

For those who are concerned about the payment of bills, mortgage, rent, and other financial obligations, officials have stressed the importance of being proactive. As this is an unprecedented situation, banks, landlords, and utility companies have had to put new procedures into place very quickly to deal with the fallout of the pandemic. Those who are genuinely struggling with finances can get help and advice simply by contacting the relevant companies and explaining their situation.

With talks of the lockdown being lifted, some businesses will start to reopen over the next couple of weeks. However, this will be nowhere near maximum capacity as before, which means that they will make less money. This, in turn, means that many will have to cut back on staffing levels, so a lot of people will be left without work even after the lockdown.

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Over recent weeks, huge numbers of people have found themselves facing financial difficulties as a result of the COVID-19 pandemic.
finance, money, debt, loans
509
2020-01-08
Friday, 08 May 2020 10:01 AM
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