1Has your organization, like many others, also decided to downsize in order to stay afloat in these turbulent times? Your industry may have been hit hard, but finding another job could prove more difficult as almost the entire economy has been impacted by covid-19. The situation emphasizes the need to better control one’s finances and to make fundamental changes to face the crisis.
If you are using a pre-authorized personal loan to deal with an important and urgent household
What to do with this loan
2In normal times, prepaying a long-term loan can make sense, but in this new normal of unprecedented times, it’s best to avoid the rush to grab a low-cost home loan. In addition, interest paid back on a home loan is eligible for an income tax deduction of up to Rs 2 lakh, a factor that lowers the cost of this borrowed capital. This benefit can be negligible if one is unemployed and therefore has little or no income. Even then, instead of prepaying the home loan, one should focus on the other necessary expenses from savings.
The debt you owe
This is also a bad time to burden yourself with any new debt, so exercise caution and control when using quick personal loans with simple terms. If you have no choice but to borrow, go for a guarantee like that against gold, stocks, investments, insurance. Be careful not to over-educate yourself with lenders as this can negatively impact your credit score.
More important than investing
4Another essential financial commitment, especially during a pandemic, is insurance. Protecting your health, protecting the lives of you and your loved ones, and paying insurance premiums on time should be high on your list of priorities. You may be tempted to invest in stocks and make quick wins, but now is not the time to take such risks or take the plunge.
Also take these measurements
5You and your family should be willing to lead a non-extravagant lifestyle for a while and rework the household budget by removing all unnecessary expenses and discretionary items.
On a personal-professional level, you should use this time to upgrade your skills and reorganize yourself, taking an affordable, if not free, online course or certification to improve your job prospects. Look for ways to monetize your skills and hobbies through freelance work, counseling, tutoring, etc. and generate income.