In the present era, coronavirus is facing financial problems with a lot of people. This is a period when you have to take every decision on finance carefully. The situation that is going on at the moment seems to be that the problem can go up for several days ahead. So, we are telling you some of the things about your better finances in this article.
Should you stop Insurance cover?
In the recent past, a question comes to most people about whether they should stop their insurance. The answer is, not at all. Because adequate insurance cover is probably the most important to keep the future safe at the moment. This will protect the financial interests of your dependent family members after your demise, apart from a medical insurance plan that will help prevent the use of capital saved by you, in a situation when someone is hospitalized. Therefore, keep insurance running.
Should you pay the EMI or take the option of a loan moratorium?
The Reserve Bank of India has extended the facility of the moratorium on all loans and credit card dues for another three months up to 31st August 2020. So, if you are in a financial burden, this feature can give some temporary relief. If you opt for this feature, make sure you have plans to repay the interest earned, in addition to your EMI, after the moratorium expires by prepayment.
Should you put a stop to credit card dues?
Not will be the answer since the credit card arrears are at interest rates of 30-42% per annum, which may result in your outstanding amount being reduced quickly. Therefore, try to complete your existing dues on time and keep your credit card properly.
Should you invest or save?
Using cost-cutting measures, you should save to create an emergency fund or increase your cash reserves. However, you should also invest in your important life goals, such as buying a home and creating funds for your children's future. If your income is not affected too much due to COVID-19 at the present time, try to continue your investment.
Should you take a new loan now?
If your finances are stable and you want to borrow for an essential purpose, this crisis can take you a loan. You can stop the loan if your income is affected due to volatility.
Read also: These types of people should never use a credit card: Know here why?
How you can change details of EPF account Online
Have you taken Car, Bike, or Home loan: How EMI moratorium period gonna affect you
Image credit: politico