The health crisis due to COVID-19 has not only had consequences for health, but also for the economy. As a result of the confinements, there was an increase in the number of people who were left without a job or, in the least of cases, saw their salary reduced.
According to the International Labor Organization (ILO), in a pandemic year the Latin American and Caribbean region lost 26 million jobs. Losing a job is one of the biggest concerns for most people, as difficult situations such as not paying financial commitments, day-to-day expenses, own and family, and without a fixed income.
The Federal Consumer Prosecutor’s Office (Profeco) offers some financial recommendations that can help you cope with this situation. If you are unemployed you must adjust your expenses to make your money work; determine the amount of money you have, either saved or for compensation; estimate the amount of your debts; determines the fixed expenses to be incurred; if you have unemployment insurance, seek guidance to apply for this benefit; Developing a budget according to your reality and following it will prevent you from spending more.
You can propose a new monthly budget in which you include the income you have (or the family has) at that time and the expenses. Take into account fixed income, which is received constantly and periodically, such as allowance, salary, pension; variable income, may or may not be received, such as commissions, sales; fixed expenses are those that remain constant, hard-to-avoid outlays such as food, transportation, gasoline, utilities, tuition, credit debts, rent; and variable expenses, which change according to the tastes and activities of each person, include clothing, restaurants, entertainment.
Evaluate the time you can maintain the new standard of living with the income you have to face your debts; If, after adjusting your budget, you still have difficulty paying your mortgage or other loans, talk to your credit institution, it is possible to reach an agreement to defer payments or renegotiate conditions.
As far as possible try to pay off debts with the highest interest rates, such as credit cards, personal loans, car credit, among others, because they are the ones that cost you the most money.
Transfer the debits of all your cards to a new account that charges lower interestThis will allow you to significantly reduce your debt, you just have to keep all of them up to date.
Be careful not to assume more debt, as you are not sure how long it will take to find a new job and it is not convenient to spend tomorrow’s income using credit now.
You must acknowledge that the bank or any financial entity expects to receive the amount of money you used, in addition to the respective interests. Try to negotiate payments on outstanding loans, they can forgive you the default interest, accumulated fines and surcharges, even come up with a more reasonable interest rate.
The Infonavit mortgage loan offers a payment protection fund and is used to pay a small percentage compared to what you previously paid. In the case of credits Fovissste there is a payment extension for one year, without cause of interest when separating from the public service.
Profeco gives you some recommendations to make the money work for you:
Immediately reduce your expenses and stay with those that are really necessary.
Avoid buying on credit and getting more debt.
It is very important to prioritize expenses and make sure you can pay the fixed ones, such as the mortgage, rent or loans.
Preferably do not use your emergency fund or other savings to continue paying unnecessary expenses that you can do without.
If you have a mortgage loan, there is a fund that is used to pay a small percentage compared to what you paid previously.
As much as possible, avoid eating outside the home.
Try not to use the car frequently, so you will pay less fuel, you can use public transport.
Take only the money you need with you.
Avoid temptation, such as strolling through flea markets or shops, so you will not make impulse purchases.
Compare when buying, decide by balancing quality and price.
Finance, UNEMPLOYMENT, Salary, BUDGET, UNEMPLOYMENT, Salary, BUDGET
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