The development of the new coronavirus has brought on a global pandemic. It has seemingly brought along with it all kinds of global issues ranging from social panic to wage losses, and even complete financial market volatility. While many consumers are loading up on toilet paper, others are prepping for weeks or months of self-isolation. With it, there are so many financial complications that could result because of this pandemic and various other issues that could drastically alter the economic and political landscape across the world.
We have been keeping up with the new developments with the Coronavirus and we have come up with some key tips that you should utilise in order to keep your financial situation from spiralling out of control.
1. Speak To Your Bank About A Mortgage Repayment Holiday If You Are Unable To Make An Income During The Pandemic
A lot of people aren't able to bring their work home with them. Likewise, some people do not have leave entitlements and others might have to take unpaid sick leave during the pandemic. Thus, if you are in this type of situation and you have a mortgage, it could end up spelling disaster for your repayment plan on your loan. Luckily, there are various things that you can try to do in order to minimise the issues this presents. While Australia doesn't yet have wide-scale mortgage suspensions in effect currently, a lot of the larger banks are offering various types of assistance packages for those that are being negatively financially impacted by the virus.
Credit Capital home loan specialist, Alister Clare says “if you are someone that has income that is being significantly impacted by the virus due to having to self-isolate, a mortgage holiday can be a decent solution. This is the process when repayments are paused because of unforeseen illness and/or making a job transition.” They suggest, “by getting on the phone and discussing your options with your loan provider, you would be able to figure out what your best options are.”
2. Take Full Advantage Of The Most Recent RBA Cuts and Refinance your Home Loan
Home loans are something that is at a complete all-time low after the most recent RBA cuts. They have dropped to. .5% during March with 35 lenders in the database saying they have every intention to pass up the full rate. Therefore, any homeowner that is savvy might look to spend time and effort refinancing to take advantage of the situation.
Refinancing your home loan comes down to doing comparison shopping to find better and more favourable interest rates or even loan features that are more flexible. However, keep in mind, it isn't for everyone. If you currently own less than 20 percent of the property, it might actually cost you more than it's worth to refinance because it will require you to go through another round of mortgage insurance. There also happens to be a lot of fees that are involved with breaking loan agreements and getting set up with new options. Therefore, you want to look at the information that pertains to your situation to ensure you are fully aware of what it entails.
3. Think About Using A Term Deposit To Keep Your Nest Egg Safe and Comfortable
While the cuts across interest rates might have meant bad news for maximising your rainy day fund in a lot of savings accounts, one of the best ways to keep your nest egg healthy in 2020 is a term deposit. That way, you can set aside your savings stash for a brief period of time at a set interest rate. This will allow your money to continue growing for you during these unstable periods within the global economy.
Term deposits are a good option because they are low maintenance. While some do come with various minimum deposits and other requirements, they will be able to help you maximise your long term savings potential. You can choose a term period of anywhere from six months to a year. This is the catch with term deposits which is the reason you want to be certain you have sufficient funds that will help you keep everything running as smooth as possible even during uncertain times.
4. If You Can Work Remotely From Home, You Can Find A Fab New Energy Deal For Your Personal Office
A lot of companies are closing their offices as more cases continue popping up all over Australia. Many are choosing to close for a minimum of 14-days as that is the incubation period for the virus. Many of these companies are asking employees to continue working from home. Therefore, if you will be using a home office, you will end up having to pay for the excess energy you are going to utilise. Many are already finding ways to save money in Australia in this inevitable situation.
Therefore, it might be a good time to reassess your energy provider to ensure that you are getting the very best deal for your energy needs. After all, you will be using your lights, Internet, computer, and everything else for an extra 8-hours per day on average. We offer a very convenient energy provider comparison tool that you can use to find the best plan for your home.
5. If You Have International Travel Plans, Consider Locking In An Exchange Rate For Currency Conversion Prior To The Aussie Dollar Plummeting Further
Those that are looking to take an International trip anytime soon will want to be certain they are taking precautions but also making the most out of the difficult situation. The RBA had the Aussie dollar sitting at a rate of .6457 USD as of March 12. It has been and looks to continue to decline during these uncertain times. Therefore, you should look to lock in a beneficial exchange rate on a prepaid card for travel which can help to mitigate the risk of having your holiday trip get even more expensive.
You can find these products which will allow you to load all kinds of currencies while either travelling or at home. They work very similarly to a standard debit card but they will be able to alleviate a lot of the stress that you might otherwise be forced to endure in what is to be one of the most stressful periods for an International traveller.
However, it's important to keep an eye on the fees as they do have various fees attached to them. For one, they come with ATM use fees, reloading fees, currency exchange fees, and more. Thus, you want to weigh the pros and the cons when you are comparing exchange rates to see if it saves you money in the long run.