The COVID-19 pandemic left many Australians in a terrible financial position. Millions of people worldwide watched their livelihoods crumple, finances get seriously stretched, relationships change, and spending habits shift dramatically as the economy took the full force of the pandemic.
However, as we now turn the corner and all get back into living in a post covid world, there are some positive steps you can take to get your finances in order and keep them that way.
If your finances, job, living situation or relationship took a bit of a hit during the pandemic, don’t stress because a bit of planning can help get you back on track and feeling more confident. The new financial year can be a great time to reassess your circumstances, whether it’s your living situation, budget, or overall goals.
We can help you by lowering your overall debt position on average by 30% (after fees are taken into account – see below) and lowering your repayments to your creditors, freeing up your money to put towards other important things in your life.
What does it cost to reduce my debt with Solve My Debt Now?
We love to be completely transparent with our clients, so you know exactly how our process works and what it costs.
The way we calculate our fees is your total outstanding debt amount (only debts you want us to work on of course!) plus 20% plus $1500 case set up fee divided by weeks/fortnights of your 1–5-year payment plan with us (which is based on your affordability).
What happens then – what’s your process?
Once you sign up, we start negotiations with your creditors and seek debt reductions or waivers, interest reductions or freezes and moratoriums.
Once a debt reduction is achieved by us, you’ll start paying off the reduced debt, and your payments to us will also reduce by that amount.
Overall, what will I save if sign up with Solve My Debt Now?
Overall, we are aiming for a 30% reduction overall to your debt position after our work is done.
Here are some other financial tips to a good life in a post covid world
Consider doing a deep dive into your finances and aim to make improvements
Even if you had a budget before, you may wish to think about creating a new post-COVID-19 budget – especially if your financial position has changed. There are a few tips you can employ to make a start on understanding how you might improve your budgeting.
For example, some of your expenses may have changed because of COVID-19. The NSW Government has announced additional funding for preschool in 2021, which is saving some families over $2,000 per child. If you are eligible for this, you might want to factor in how this impacts your planning for the financial year ahead.
Other expenses might be improved by examining your current debt position and repayments to your creditors. We can help with that.
Moneysmart has a great resource available on budget setting, and if you struggle with sticking to a budget, consider supporting your efforts with a budget app like Pocketbook or MoneyBrilliant.
Consider building an emergency fund
If a global pandemic has taught us anything, it’s that having a financial safety net can be extremely helpful in uncertain times – and there’s never a better time to start preparing for unexpected curve balls.
MoneySmart suggests that an emergency fund should contain at least three months’ worth of expenses – and Moneysmart suggests that one way to start saving a financial buffer is in a high-interest savings account, that’s separate from any daily use accounts so that it can’t be easily dipped into for daily expenses. There are many other money-saving methods to consider as well.
For example, an automatic transfer could be set up to go directly into an emergency fund so that it’s growing slowly and there for when it’s needed. Any extra cash may also get deposited into your emergency fund in order for it to grow more quickly.
Of course, dealing with your debt position is a great way to put money into your pocket for your emergency fund!
COVID-19 may have thrown parts of your life into a spin, but the sooner you start taking control and setting personal and other financial goals, the more likely you’ll be able to carve out a secure and happy future. Consider the benefits of goal setting and planning around the start of the financial year and set yourself up for success in 2022!
Many first home buyers have been caught out by this news and feel cut off so they can’t keep up anymore. It’s out of their control.
How we can help
The better your finances look the better chance you will have of being approved for a home loan. Let us help you reduce your debts, clear your credit history, and get you in a position where you can enter the home loan market.
Call the solve my debt now specialist team today on 1300 070 672 or email email@example.com
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