National Family Day: Credello Provides Tips for Parents to Overcome Financial Challenges Post-COVID

Adversity can bring families closer together or pull them apart. During the Covid-19 pandemic, familial bonds were tested by close-quarters confinement, schedule disruptions, and financial challenges. Many parents emerged from the debacle stronger for the experience, but several are still struggling with balancing their finances. As America prepares to celebrate National Family Day on September 26, we’d like to offer a few tips to help with that situation. 
Tip #1: Commit to a Debt Payoff Strategy   
There are two widely adopted strategies for paying off debt. The first is called the debt avalanche method. Make minimum monthly payments on all your debt accounts, but then add an extra payment to the account with the highest interest rate. Once that’s paid off, increase payments to the account with the next highest interest rate.   
The other strategy is called the debt snowball. Instead of focusing on interest rates, the order of payment is based on account balances. You start with the smallest, using the same technique described above, and move through your list small to large. This gives debtors an opportunity to experience small wins early in the cycle and build positive momentum. 
Tip #2: Review and Cut Your Expenses
Digging out of a financial hole requires hard work and self-sacrifice. As the head of a household, you should have a budget to make ends meet. Review that budget and find areas where you can make some cuts to your expenses. Examples of this are take-out food, entertainment, and those premium movie channels on your cable package.  
Some expenses could decrease naturally as the world opens back up after Covid. Your family, who may have been stuck at home for several months, should be going back to work and school. It’s a good time to turn off lights, lower the thermostat, and otherwise limit the amount of electricity and fuel you’re using. Check your utility bills to see if this is happening. 
Tip #3: Explore Refinancing Options
One of the benefits of the pandemic is that the Federal Reserve has kept interest rates at a historically low level. Many families took advantage of this last year and refinanced their mortgages. If you have not done so yet, it’s a good time to investigate refinancing options. Check with your local bank, credit union, or online lender about your options.  
Another form of refinancing is debt consolidation. If your financial problems include high-interest credit card debt, consider taking out a debt consolidation loan to lower interest rates and make your monthly payments more manageable. This could also have a positive impact on your credit score because revolving credit balances are a major factor in calculating your score.  
Tip #4: Start Enjoying Life Again
Gratitude is a financial principle. Those who maintain a positive attitude and enjoy life tend to be more successful than those who don’t. We all went through what may prove to be the most difficult time in our lives during Covid. The worst is over. It’s time to start embracing what life has to offer and celebrate the wins when they come along.  
National Family Day is a good day to start. Our children are our most precious possession. Our spouses and partners stand beside us as we weather the storm. Our parents guide us with their wisdom and experience. Cherish them all and be thankful for those who are still with you. Money problems can be temporary if you do the work. Family is forever.    
Source: Credello