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COVID-19 and Finances: Tips for Managing Debt Post-Coronavirus Pandemic

It is becoming hard to remember a time before COVID-19. Even though it has only been a couple of years, in some ways, it feels like it has been decades. Fortunately, we seem to be nearing the end of this worldwide nightmare. However, even as case numbers appear to be dropping and mandates are being lifted, there is a sense for some of us that the aftermath of the Coronavirus pandemic is going to haunt us for years to come.

One area of our lives that the COVID-19 pandemic might still impact long after it’s over: our finances. From the earliest days of the Coronavirus outbreak, our pocketbooks and wallets were hit hard. Very few, if any of us, were able to escape the financial crisis COVID left in its wake. You could find financial problems in every area of our society, including:

  • Product shortages
  • Inflation
  • Transportation and shipping problems
  • Price gouging
  • Customer loss
  • Pay cuts
  • Layoffs
  • Resignations
  • Unexpected medical bills
  • Business closures
  • Stock market instability

Financially speaking, during the pandemic, anything that could go wrong, did. For that reason, among many others, witnessing what appears to be the end of the pandemic is a sight for sore eyes. However, many of us have not escaped this disaster unscathed. We have racked up mountains of debt that we have no idea how to manage.

Tips for Managing Debt After COVID

For those who find themselves facing seemingly unmanageable debt problems following the pandemic, you are not alone and there is hope. There are options and help available to you. You just need to know where to look and how to reach out for the help that’s right for you. Here are a few tips for how to manage your debt after COVID:

  • Creditors – Make a list of your creditors and the balances you owe them.
  • Strategy – Figure out a plan for how you will payoff your debt, including in what order you will pay them off. One popular strategy is to payoff smaller debts first and work your way up.
  • Payments – Make your payments on time and in full. Making payments late and missing payments are both very harmful to your credit score.
  • New Debt – Avoid taking on additional debt. Think of it like this: if you were trying to bail water from a sinking ship, would you add more water to the ship at the same time? New debt isn’t a solution. It’s just another problem you will have to solve down the road. Save yourself the future headache and don’t take on additional debts until you have, at least, paid off your current debts.
  • Bankruptcy – Too often bankruptcy is portrayed negatively. People who file for bankruptcy are not bad people, failures, or frauds. They are good people with limited options who are buried under an overwhelming amount of debt. Bankruptcy gives those people hope. It is often the best option for people suffering because of unmanageable debt. Bankruptcy allows people with debt problems to regain control of their finances and begin to put the pieces of their life back together.

Need Help Managing Overwhelming Debt? Contact Us for a Free Consultation!

At Ast & Schmidt, P.C., we understand what you’re going through. Overwhelming debt can happen to anyone. We see it every day. For more than three decades, our bankruptcy attorneys have helped people with unmanageable debt overcome their financial problems and regain control of their lives and futures.

Our legal team works closely with each client to ensure that we thoroughly understand their situation and provide them with the best options available to solve their financial problems. We want our clients to feel comfortable and heard, so we will never push you into making any decisions you don’t want to regarding a debt relief plan. This is your life, and only you know what’s best for you. We’re simply here to provide you with a roadmap to a better financial future. Ultimately, it’s up to you to take the first step.

Whenever you’re ready to take that first step, give us a call at (973) 363-2260, or reach out to us online, so we can help you find the path to a fresh financial start and debt-free future. We offer free consultations!