It certainly is a difficult time for countless Australians due to the devastating impact that the coronavirus pandemic is having on businesses across the country.
At the start of the year nobody could have predicted that Qantas Airways Limited (ASX: QAN) would have to stand down 20,000 employees and restaurants, retailers, and salons across the country would be forced to close their doors.
These are unprecedented times and are likely to have a big impact on the finances of all Australians. So what can we do?
1. Look at your support options.
If you've lost your job because of what is happening right now, then the first thing I would do is look at the stimulus packages the government has announced. It has taken decisive action in the national interest to support households and businesses and address the significant economic consequences of COVID-19. This includes a time-limited coronavirus supplement to be paid at a rate of $550 per fortnight. Which will be paid on top of the normal JobSeeker payment that you are eligible for. Sole traders are also eligible under certain circumstances.
2. Look at your budgets.
At times like this I think it would be wise to look through your budget and see which costs you can cut. Is that FOXTEL subscription necessary? How much are you spending on Uber Eats? These are all little things but they can save you valuable dollars at a time when every cent counts. It is also worth noting that used responsibly, Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), can be great budgeting tools. I would just suggest you carefully factor in the repayments into your budget and spend wisely.
3. Mortgage relief.
Whilst at this stage there doesn't appear to be any relief for the millions of people renting across the country, if you're struggling with your mortgage then Commonwealth Bank of Australia (ASX: CBA) and the other banks are ready to support you. For example, Commonwealth Bank's customers requesting financial assistance will be able to defer their repayments, with interest capitalised, for up to six months. At the end of the support period, the loan balance will be recalculated and the loan term will be extended so that the repayments stay the same as they were prior to the commencement of the deferral.
