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There are plenty of ways that families can reduce the debt they incurred during the pandemic out of necessity. Here are some of the most popular options.
1. Use Paid Sick Time
Due to the pandemic, many businesses have increased the amount of paid sick time their employees receive. A lot of individuals have chosen to save this time to apply at a later date. Instead of staying home on unpaid leave when you are sick, choose to receive these payments. That can help you receive more income if you are in debt.
2. Apply For Unemployment
Unemployment is designed to reduce financial stress during hard times. During the pandemic, it was expanded so that more people could receive benefits. Plus, the amount they received was increased. However, only about one-quarter of the unemployed population has applied for this relief.
If you’re out of work and have debts to pay off, you should consider applying for unemployment. Many of the requirements are still relaxed due to the economic situation. However, this option can put cash in your pocket so that you can make your required payments.
3. Receive Social Assistance
Unemployment isn’t the only social assistance program out there. Find another one that you may be eligible for and apply for it.
4. Apply Stimulus Savings
Stimulus checks were an advance on a tax credit. Many Americans received these checks, although some got them as part of their tax returns. If you’re in debt, this can be a lot of money. Use it wisely and apply it to your debt.
5. Eliminate Out-Of-Pocket Medical Costs
Much of the debt people have accumulated comes from medical bills. Fortunately, insurance companies and the government have compensated for anything related to COVID-19, such as testing and treatment. If you have COVID-19-related debt, find out how you can eliminate it. It could be as simple as a message to your insurance company or doctor.
6. Save Tax Refunds
A lot of people increase their spending when they receive their tax returns. However, if you’re in debt, saving it and taking out a debt consolidation loan might be a good idea. The loan experts at Priority Plus Financial note that this can be a great way to create a stash for when you are paying off your loan.
The pandemic put a lot of families in debt. Now, they need options to pay off these debts. These are just some of the options available for families. There are plenty of other ones, so anyone can find one that fits their needs.