How To Cope-Up: Covid-19 has hit the Credit Lines Quite Hard

If the third world war with the latest missiles or even nuclear arms would have taken place and hit the world economy, it wouldn’t have surprised us like this Covid-19 has changed the complete thought process. All the countries were gearing up for increasing defense lines capacity and an arms race was evidently seen until this pandemic has changed the dynamics completely.

The Middle East War, US-Iran Crises, US-China Trade War, increasing tensions in South Asia between nuclear-armed countries Pakistan and India were quite quickly evolving into a deep crisis situation. All these were halted with the arrival of Covid-19 that caused deadly disruptions without even being seen.

Economy Sank Down Too Quickly

With millions of job losses in the United States only, this crisis completely turned down the economy on its own. When we compare this to controlling the situation in China, they were quick to react, build hospitals, and deliver essential items door to door. This could not be replicated to a great extent as budget constraints and performance delivery system lacked a great deal.

The travel bans, businesses shutdowns, lockdowns, and curfews, limited international trade, oil prices fallout, what more you could have asked from third world war. All the harsh threats to the economy became instantly became a reality with the emergence of this virus. Now, individuals and businesses are on the verge of extremely low credit lines.

They tried to cover up by laying off employees but this hasn’t proved to be enough for most of them to ensure their survival. Governments injected cash and essential commodities in the current economic fiasco, but they are now also knocking the doors of global economic institutions.

The World Community Now Gears Up For the Lockdown Ease

With social distancing measures being in place for quite some time, the spread and fatalities have declined to a certain extent. This has allowed the governments to think about easing the lockdowns and lifting the curfews on the movement of people. The most hard-hit countries, Spain and Italy are also gearing up to resume their economies.

It is great that the ice has melted and now businesses will continue to function with some SOPs being in place. You surely would like to be socially distanced as much as possible but still, you need to go out to ensure you don’t fall into much more financial crises.

Coping Up With the Low Credit Lines At The Moment

The economic downturn has emptied the savings and who didn’t have any are now surely in debts that they are required to pay back. To deal with this, we need to look upon several options that are available for you to get back to normalcy soon enough.

The Authorities Need To Jump In

The first and foremost thing that each individual who has landed in this crisis situation needs to turn up to their government and file for financial assistance. These claims must be entertained by the governments or the recovery period would be delayed for an uncertain time. The weaker economic countries are now seeking help from International Financial Institutions to be able to help out their affected segments of society.

Banks Need To Ease Their Policies

Although, the banks have turned down loan requests to a drastic number that has put adverse impacts should definitely ease their policies. The secured loans for bad credit are the most in-demand now as very few individuals have managed to maintain their positive credit lines as compared with the previous performances.

Assistance from Your Social Circle

Before getting into this, borrow only that much money that is required to fulfill essential needs. The luxury spending needs to be cut off completely and then do ask for a little bit help that won’t be a burden on anybody also too to accommodate. Do ask out from friends and family with whom you have enjoyed a good relationship and look to get back to them whenever possible.

Make Limited Use of Your Existing Credit Cards and Other Options

To be able to survive this uncertain economic crisis, you need to be careful with each of the penny you spend. Many of us enjoy the credit card limits to a great extent but this time, pull up on your expenses without further entertaining any ambiguities in mind. The situation remains uncertain till now and your credit card must be the lifeline you should always have.

Preparing Yourself for the Next Pandemic

Things have started a bit to move in a positive direction although the health experts continue to warn about the repercussions if any negligence is shown. We really hope you would be getting back your job and businesses will be fully functional as the lockdown measures are eased with social distancing SOPs.

Preparing for the pandemic will require you to think out of the box and certainly will require going out an extra mile to earn safety. Do ponder over your options what you can do to build a second stream of income. Get yourself moved towards the investment phase and try to build upon assets that can give you returns once you are at your normal working routine.

The best thing you can do for your business is to make a total technological shift so you can have better controls and also look to have a strong online digital presence. This can immensely help in building a second stream of sales with much better return on investments.

What you can be optimistic about is you would be moving out in a fresh and healthy outdoor environment next time when you are able to do that. The air pollution levels have fallen drastically and we hope that human greed does not reverse these changes once again.

This has been an immense mediation period for all of us and we should look to mend our lifestyle as much as possible. Certainly, the prays for the deceased and more power to the frontline health workers and hoping for the best at the same time.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes