Paying close attention to financial wellbeing in this current time is paramount. Here's why.
Commenting on the Financial Conduct Authority’s survey tracking consumer financial resilience, Myron Jobson, Personal Finance Campaigner, interactive investor, says: “It is noteworthy that the economic impact of Covid-19 has disproportionately affected the income of those in BAME communities. It is not something that is explored in great detail in the city watchdog’s survey, but it comes against the backdrop of Black History Month which aims to challenge inequalities in all aspects of society – finances included. We need more research into this.
“The importance of paying closer attention to your financial wellbeing and taking some time to plan ahead to help fortify your finances against the coronavirus economic uncertainty rings true regardless of ethnicity. This could translate to squirrelling away more money into a rainy-day fund – if you have the means to do so - or reducing ‘nice to have but not essential’ expenditure – if squeezed finances and regional lockdowns haven’t curbed that already.
“Payment holidays are designed to be temporary solutions for those who’ve found themselves in a financially precarious position during the pandemic. Sooner or later borrowers will have to pay what they owe, and lenders need to be completely upfront about how payment delays could increase costs over the long term. If you can afford to make repayments, it is still in your best interest to do so.”
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