Lockdown is a strange place; not only can you be fined and potentially arrested for drinking with friends, but you can’t see family and loved ones unless you follow strict protocols- welcome to a new kind of normalladies and gentlemen!

One thing that seems as if it never changes is debt. If anything, it’s easier to fret about your finances because of the world’s unpredictable nature. However, the key is not to put it to the back of your mind. There’s never been a better time to wipe the slate clean if you have arrears and overdue balances.

Here’s why.

You Might Be Okay Financially

Not everyone has been hit hard by the health crisis. Some people are better off as the pandemic has encouraged them to save and not splurge on as many non-essentials. For instance, UK consumers repaid a staggering £7.4 billion of debt this year due to the fact they stayed away from the high street. If your disposable income is currently higher, the best way to spend it is to save for a rainy day. You can start by reducing your balances, as the less you have to pay, the more money you’ll have in your pocket!

There Are Lots Of Offers

It’s not only the tourism and hospitality sectors that have suffered. Lending companies are turning over smaller profits since people are spending and borrowing less. Therefore, there are opportunities to switch your debt platform. Payday loans might not have the best reputation, yet there are lots of benefits right now, such as lowering borrowing limits. On the other hand, credit cards with 0% interest for fixed periods provide more breathing space because there’s less pressure to pay. It always depends on who you owe and the circumstances. Still, it never hurts to shop around!

Your Exposure Is Bigger

Thankfully, tax, rent, and mortgage contributions have been suspended while the country gets to grips with the virus. Yet, you should get too comfortable regarding tax, rent, and mortgage holidays as the debt isn’t wiped. It’s only put off until another date, which means you’ll have to repay it at some point. People who forget or don’t plan for the restart could find themselves in a position where they owe a considerable sum, more than if they paid in the first place. Before you accept a payment holiday, you should figure out whether it’s suitable.

You’re Eligible For Government Packages

The terms and conditions around packages for employed and self-employed workers are quite liberal. You only have to prove that you’ve been affected to be eligible, which millions of people have recently, and the government will do the rest. With the money, you could use a chunk to lower your debts so that you have one less thing to worry about. Won’t your debt level rise? No. The schemes are grants that you don’t have to pay back. The only thing you must consider is that they are taxable and need declaring on your return.

If you can afford it, reducing your debts could offer stability in an increasingly uncertain world!