The COVID-19 pandemic has spread across the globe and left economic destruction in its path. Now, more than ever, it is of utmost importance to take control of and manage your finances so that you can enter this time of uncertainty with the peace of mind you deserve. Follow these simple steps to take back control of your finances:
1. Keep an eye on your credit score
Due to COVID-19 and the nationwide lockdown, many South Africans’ financial situations and financial security have changed. This change can influence your credit score, which is why you need to keep an eye on it.
Why? Because by protecting your credit score, your chances of being accepted for the best deals on credit products will increase. It comes as no surprise that many credit providers are tightening their belts and lending criteria during this time, so make sure to put yourself in the best possible situation when it comes to credit.
2. Apply for credit as soon as possible, if you need it
As mentioned above, many credit providers are tightening their belts and has withdrawn numerous products from the market. If you need to apply for credit, we advise you to do this as soon as possible to secure the right product and price for said product.
3. Cut back on expenditure
It’s important to take the time to look at your income and outcome, especially in preparation for the coming months. To reduce your expenditure, you can either reduce an outgoing payment or delay it. An example of reducing your outgoing expenditure is cancelling a subscription that you no longer use or don’t use as often.
If you want to delay your outgoing expenditure, you can choose to put your payments on hold by taking a payment holiday. Applying for a mortgage payment holiday can significantly soften your financial blow during this crisis and luckily, most lenders are now offering this option.
Whatever plans and measures you put in place to manage your finances during this crisis, make sure to stay calm, collected and safe.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)