The Covid 19 pandemic has been one of the most devastating events in recent memory. Not only did this deadly pandemic cause a worldwide health crisis but it also caused global economies to tank and thousands of jobs to be eliminated.
Because of this people are having trouble with a lot of their basic expenses including paying their rent, getting their groceries, affording all of the necessities that they need, as well as paying off their loans.
Since the pandemic is not over yet, a lot of people are wondering how they can possibly manage their loans since a lot of their savings have already been drained.
These are some of the best ways that you can take action and make your loans manageable during the pandemic.
- Look for Deferment Options
The first thing that you should do in order to make your loan burdens bearable during the pandemic is to look for deferment options from your loan servicer. Loan companies are often very understanding when there are special reasons why their borrowers cannot make payments. If you are making loan payments and you are still in school, plenty of loan servicers especially student loan servers will give you the chance to defer your loan payments indefinitely until 6 months after you graduate. If you are in the medical field or on active duty there are plenty of deferment options as well. Make sure to call your lender and talk to them about the different deferment options that they have and see whether you can qualify for one of them.
- Ask for Forbearance and Income-Based Repayment Plans
If you do not qualify for any of the deferment schemes that your lender has, there is also the option to ask for forbearance. Forbearance is when you ask for a deferment on your loan payments for a certain number of months until you can finally get back on your feet and start making payments again.
Another option to ask your lender is that if they have an option to pay your loan based on the current income that you are making. If they have this option then they might be able to allow you to stop making payments while you are unemployed because of the pandemic. Make sure to communicate your problems clearly to them because the customer service agents that represent these companies are human after all, they are more than willing to understand and help you find the best solution.
- Find an Online Side Hustle
If all your attempts to defer or reduce payments for your loan fails and you have to continue paying the full monthly amount, the first thing that you can do is to go on the different freelancing sites online and start applying for freelance positions for jobs that you are skilled in. If you have a background in writing, for example, you can easily apply for content and copywriting jobs that you can do to supplement your income maybe even to the point of affording your loan payment using the money that you earn from that job alone.
- Get a Bridge Loan
The final option is to get a bridge loan with your mortgage. A bridge loan is basically a loan that is used for a period that money is needed but not yet available to the point where money becomes available again. Even though bridge loans are usually used for the buying and selling of houses in most cases, there is absolutely no reason why you couldn’t use them to supplement your income during the pandemic. Go to the Vaster Capital website and you will find plenty of options to get loans like this.
So hopefully by now you will at least take solace in the fact that there are in fact ways that you can manage your loan burdens during the pandemic. Keep focused, don’t lose hope, and you should be able to comfortably afford all of your bills with the right mindset.