How COVID-19 may affect your finances
The spread of the Coronavirus (COVID-19) pandemic is impacting many aspects of our lives and as the situation is constantly evolving, Credit Savvy is endeavouring to provide information on how COVID-19 could affect your finances during these uncertain times. Here are some of the impacts that have been felt so far and things you may like to consider to help you manage your financial situation.
Superannuation balances taking a hit
With the share market being impacted by the pandemic, your superannuation balances may have been affected. If you are not sure what your current balance is, make sure you log in to your superannuation account to understand how your portfolio is performing and if you should speak to your financial advisor.
If you’re feeling the financial strain from the pandemic, the Government has introduced temporary measures to help Australians in need access a portion of their super and reducing superannuation minimum drawdown rates for retirees who require support during this time. You can read more about the Government’s response to explore your options.
Cost of living may become more expensive
Supply for goods could become limited due to businesses being unable to operate as normal, therefore, we may see an increase in costs that could be passed on to consumers. If your cost of living increases, make sure you are revisiting your budget from time to time, so you know how you’re tracking and to identify any spending areas that you can change to adapt to your current financial situation. Check out these essential apps to help manage your money better.
There could be changes to credit application process
If you are currently in the process of applying for credit, there may be changes to the application process or to your individual application. Contact your credit provider to understand their process during this time and how the changes may affect you.
RBA cash rate at a record low
The RBA cut the cash rate to 0.25% after an emergency meeting in March (and there has been no movement in RBA cash rate decisions since), which has brought some relief to certain types of loan holders. With home loan interest rates at record lows, now may be a good time to revisit your current interest rates. A reduction in your home loan interest rate may assist with lessening some of the pressure on your household in the months ahead.
Unemployment rate increase
Various businesses have been forced to close as part of the current Government restrictions in an effort to stop the spread of COVID-19, and as a result, many Aussies are left jobless. If you have lost your job or your employment status has been affected, you may be eligible to receive financial support from the Government’s stimulus packages.
Hardship assistance rises
If you are struggling to keep up with your repayments, you should first contact your credit provider as they may have dedicated financial support teams to help you manage your repayments during this time. Check out our article on the emergency COVID-19 financial relief support to get more information on what measures financial providers have in place.
As always, our focus at Credit Savvy remains to support you with your free credit score and credit file information.
If you have concerns about how your credit score could be affected as a result of the impacts of COVID-19, we encourage you to stay on top of your finances and credit accounts, and to monitor your credit history. Log into your Credit Savvy dashboard to track the changes on your credit report today.
Want to know more information about COVID-19?
The COVID-19 & your finances series contains tips and support information to help you manage your finances during this difficult time.