The COVID-19 pandemic has caused high unemployment throughout the country. Even if the country is able to overcome this situation and begin re-opening, it may take some time for many businesses to ramp back up again. If you are currently unemployed or otherwise experiencing financial hardship, you might be looking at different options to keep yourself and your family afloat. One option you might want to consider would be installment loans or personal loans. Here's how a personal loan might prove beneficial as you navigate the pandemic.
Get a Larger Amount of Money Up Front
While credit cards can work well in an emergency, this might not be ideal for you if you don't have a large line of credit. While the exact amount will, of course, vary per person, it is generally easier to get a larger lump sum of money through an installment or personal loan than it is to get a large line of credit through a credit card company. If you have a lot of bills to pay like a mortgage, you will want to get as much money in emergency funding as possible during this difficult time.
Consolidate Your Bills or Debts
If the pandemic and your recent unemployment has you falling behind on your bills, you might be getting charged late fees or penalty interest rates that will significantly increase your total expenses over time. Get a large installment loan and use it to pay off all of your existing credit cards. You will eliminate those debts and their higher interest rates and fees, and then you'll only have to pay one bill every month to the company that gave you the personal loan. Not having to manage 10 different bills every month may also ease your mind a bit during these stressful days.
Peace of Mind
By getting a large sum of money up front and then paying it back slowly over time, you will be given the peace of mind of knowing that you and your family will be OK, even if you don't go back to work for a little while. You can pay off what you need to and then keep the rest of the funds in your bank for future emergencies while only giving back some of it with your monthly payment to the personal loan company. Peace of mind will help you stay focused on priorities like your new job search or your health.
For more information about loans, contact a finance company like Ardmore Finance.