NEW YORK – September 24, 2021 – (Newswire.com)
Adversity can bring families together or separate them. During the Covid-19 pandemic, family ties have been strained by close confinement, schedule disruptions and financial challenges. Many parents came out of the debacle stronger for the experience, but many still struggle to balance their finances. As America prepares to celebrate National Family Day on September 26, we would like to offer you some tips to help you with this situation.
Tip # 1: Commit to a Debt Repayment Strategy
There are two widely adopted strategies for paying off debt. The first is called the debt avalanche method. Make minimum monthly payments on all of your debt accounts, but then add an additional payment to the account with the highest interest rate. Once that is paid, increase the payments to the account with the next highest interest rate.
The other strategy is called the debt snowball. Instead of focusing on interest rates, the payment order is based on account balances. You start with the smallest, using the same technique as described above, and work your way through your list little by little. This gives debtors the opportunity to make small gains early in the cycle and build positive momentum.
Tip # 2: review and reduce your spending
Getting out of a financial hole takes a lot of hard work and self-sacrifice. As the head of the family, you should have a budget to make ends meet. Take a look at this budget and find areas where you can reduce your spending. Take-out, entertainment, and premium movie channels on your cable plan are examples.
Some expenses could naturally decrease as the world opens up again after Covid. Your family, who may have been stuck at home for several months, should go back to work and school. Now is a good time to turn off the lights, turn down the thermostat, and limit the amount of electricity and fuel you use. Check your utility bills to see if this is happening.
Tip # 3: Explore Refinancing Options
One of the benefits of the pandemic is that the Federal Reserve has kept interest rates historically low. Many families took advantage of this last year and refinanced their mortgages. If you haven’t already, now is a good time to explore refinancing options. Check with your bank, credit union, or online lender for your options.
Another form of refinancing is debt consolidation. If your financial problems include high interest credit card debt, consider taking out a debt consolidation loan to lower interest rates and make your monthly payments more manageable. It could also have a positive impact on your credit score, as revolving credit balances are a major factor in calculating your score.
Tip 4: start enjoying life again
Gratitude is a financial principle. Those who maintain a positive attitude and enjoy life tend to be more successful than those who don’t. We have all been through what could prove to be the most difficult time of our lives during Covid. The worst is over. It’s time to start enjoying what life has to offer and celebrate victories as they arise.
National Family Day is a good day to start. Our children are our most precious possession. Our spouses and partners stand by our side as we weather the storm. Our parents guide us with their wisdom and experience. Cherish them all and be grateful for those who are still with you. Money problems can be temporary if you get the job done. Family is forever.
Press Releases Department
National Family Day: Credello provides advice for parents to overcome post-COVID financial challenges