How to survive financially during COVID-19 pandemic
Australians are feeling the pinch as business shutter and workers are laid off, with income losses set to escalate over the coming months. But there are simple ways to help yourself.
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Curbing discretionary spending and acting early to get help are the keys to being able to cope financially over the coming months.
Many people have already been forced to do this with the closure of restaurants, cafes, pubs, clubs and cinemas across the country.
Income losses are expected to escalate for some time yet amid the COVID-19 pandemic.
Financial services firm Canstar’s spokeswoman, Effie Zahos, warned households to cut back unnecessary costs and act quickly if they can’t meet repayments.
“It’s going to get tough,” she said.
“And who has six months of wages stashed away in an emergency account?
“The good news is that utility providers and telcos have improved a lot with their hardship arrangements.
“There’s a lot of compassion happening out there. If you can’t pay your bills, get in touch with your provider and negotiate the repayment terms.”
Ms Zahos said borrowers who found themselves out of work should investigate hardship provisions offered by financial institutions and seek to have their mortgage payments put on hold.
Renters should check their eligibility for rent relief.
“If you’re a renter, talk to your landlord about what you can do – if you can do some work or trades around the house, then maybe they can reduce your rent in return for you fixing up the house,” Ms Zahos said.
“This is the time when we all have to sit down and go through our budgets and see what expenses are necessary and what you can put on hold.”
Project engagement officer Renee Royle, 40, said mortgage repayments was her biggest concern if she ends up losing her job.
She has been diligent in tucking away money for bills from each pay packet and said the coronavirus outbreak was creating a lot of financial uncertainty.
“The banks have been really good letting people defer repayments so I guess there’s options there for me,” she said.
“But, at the moment, I’m overspending because I’m buying stuff now just to make sure I’ve got things in case I might not be able to get them later (if I have to self-isolate).”
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Origin retail executive general manager Jon Briskin said the energy provider expected a significant increase in customers requesting financial assistance with their bills as more people lost their jobs in the coronavirus pandemic.
He said disconnections for non-payment of bills had been temporarily suspended and five-week automatic payment extensions put in place.
“We understand that during this difficult and uncertain time, many people will be worried about how they are going to pay their bills,” Mr Briskin said.
“For customers who are having difficulty paying their electricity or gas bills, they can easily request bill extensions of up to five weeks online within a few clicks.”
TIPS TO COPE DURING THE COVID-19 OUTBREAK
• Contact your service provider immediately and ask for extra time to pay, a formal payment plan or to be assessed for their hardship program.
• Work out how much you can afford to pay and budget a repayment schedule.
• For more information on coping during COVID-19 visit moneysmart.gov.au
• Get free financial counselling through the National Debt Helpline on 1800 007 007.