With the COVID-19 pandemic’s recent surge and coronavirus-related
unemployment levels remaining high, many people are finding it increasingly difficult
to keep on top of expenses and debts.
If you are someone who has felt the economic
impact of the pandemic and have seen your outstanding debt rise as a result,
following are just a few things you can do to help manage your debt and try to
keep it from negatively impacting your credit score.
Take a close look at all of your expenses and
see if there are any routine costs you can eliminate. While a daily coffee at
Starbucks or a high-end cable package may be nice, eliminating such costs can
translate to a significant savings over the course of a year.
Though many COVID-19-related debt relief programs have already expired, it is still worth a call to your credit card issuer to see if there is any way they will work with you, such as with a flexible payment plan.
Focus on paying down your credit cards with the highest interest rates first.
If your credit score has not been negatively
impacted, it is worth checking to see if you are eligible for a lower interest
rate on your credit cards —something most card issuers will not offer unless you
Check out if you are eligible for a 0% or
low-interest rate offer for a new credit card that you can transfer debt to
from a high-interest rate card. Again, this is likely only possible if you have
a good credit score. And if you do qualify, be sure to read all the terms and
conditions, as breaching them could actually leave you with higher fees or
rates than you began with before transferring your debt.
If you are a homeowner who has amassed substantial
equity in your home, you may want to consider taking out a home equity loan to
pay off your credit card debt, especially with current interest rates
continuing to be at or near historically low levels. Alpine Bank offers a
variety of home equity loans, click here to learn more.