Take action and reach out in these tough times
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.
“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,” Ms Zahos said. “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. 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 were her biggest concern if she ended 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).”
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 fiveweek 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.”