Instant loans and unsecured loans are an expensive solution to financial difficulties caused by coronavirus, and you should avoid them even if your finances are tight. It is a good idea to contact your creditors and collection agencies to negotiate payment arrangements and to figure out solutions to your situation.
If you are unable to pay a bill or an instalment of a loan, contact the sender of the bill already before the due date to try to negotiate a new payment schedule. Even though this is something you can do even under normal circumstances, it is worth it to keep it mind mind especially now.
Many banks have announced they will be offering instalment-free periods free of charge to any of their personal customers who are having financial difficulties caused by coronavirus. Businesses and collection agencies are asked to conduct themselves in a responsible way if a consumer is asking for payment arrangements to be made during this exceptional situation.
It is a good idea to pay bills in order of importance. Prioritise paying for your living: rent or charge of use, mortgage, electrical and water bills. Next, pay your other necessary expenses: food, phone, daycare, insurance, etc. Figure out if there are any expenses you could cut, such as magazine or newspaper subscriptions or entertainment services.
If you still find yourself needing to take out a loan, at the very least do not make new withdrawals from any instant credit agreements made before 1 September 2019. The interest rate ceiling of 20 % that came into effect last autumn does not apply to them, so the credit costs may be significantly higher than that.
Financial and debt counseling services can help you map out your debt situation and help you negotiate with creditors free of charge. Guarantee Foundation can also help you with financial matters.
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