5 Ways to Cope with Financial Distress After Covid-19

The 6-month moratorium period granted by banks on loans in Malaysia which was originally scheduled to end on 30 September 2020 has been extended for 3 more months for those affected from job loss, business closure or health crisis due to the Coronavirus pandemic. This is good news as it gives those affected more time to get back on their feet again. Here are 5 things you can do:

1. Evaluate your financial state

It is crucial to have a clear overview of your real financial state before you can take the next step. If you have lost your source of income, what other alternatives are available and how long can those last? Make sure your insurance policy is still valid just in case you fall sick.

2. Reinvent yourself

The market demand for various skills has changed significantly after the pandemic. You should explore new areas you can apply your skills or pick up a new skill to secure your income stream. Consider having a second income. You may also reduce your risk of being jobless by working for more than one employer.

3. Review your expenses

Now is not the time to prioritise your social image. You should cut all unnecessary spending on luxury items and stick to essential stuff only. Find ways to save more by eating at home or using public transport instead of driving. Don’t worry about what others think of you because they may be affected too.

4. Talk to your bank

Many banks have stated their intentions to help their customers through these difficult times. There are various options available including lower loan payments, refinancing and loan restructuring.

5. Sell something

Most people have way more stuff than they really need. This is the time to do some spring cleaning and put up those things you do not need for sale. These days, it is easy to sell online without extra cost to increase your financial buffer.