It’s a fast-growing and widespread concern when it comes to managing money in the aftermath of a global pandemic. This cause financial anxiety, as you might call it.
You have many questions related to manage your money. For instance, you’re struggling with credit card debt, considering tapping your 401(k) or facing uncertainty about how to cover costs for your small business.
Though it’s always best to speak to your own financial advisor about your specific situation. There are many certified financial planners now offering free help.
Here are some suggestions you can consider to ease your financial anxiety:
Will Credit Card Companies Entertain Lowering the Current Annual Percentage Rate on Present Balances?
Here’s a ray of light for borrowers struggling to pay off credit card debt. Most credit card companies will consider lowering the interest charged on your current balance.
Be upfront. Contact the creditor. Let them know your current financial situation and that you need some leeway in paying off your debt.
An expert said, “Consider shopping around for a zero percent or other low-rate balance-transfer card. This can reduce your required payments, give you a reprieve from interest charges for 15 to 21 months and be a real tailwind in your efforts to pay off debt.”
Would It be Wise to Take Out a 401(k) Loan to Pay Off Bills Now in Preparation of a Possible Layoff?
Most financial advisors agree that taking a loan from your 401(k) or workplace retirement plan should be a last resort, even now.
However, if you find you desperately need those funds and have no other resources, the stimulus bill working its way through Congress relaxes the rules around retirement-plan loans. It allows you to borrow up to $100,000 from your 401(k). That’s double the amount you can normally take.
