It pays to spend and save smart during the Covid-19 crisis
Contributed by CTOS
As the world continues to learn more about Covid-19, concerns and uncertainties over what is to come are rising. Many of us are wondering about the state of our finances. Here are five actions you can take that could help keep you financially sound.
Reconsider your budget
You may want to tighten your budget to ensure you have enough funds to cover your expenses, especially if the crisis goes on longer than expected. Allocating more money into your emergency fund is also a good idea – put away as much as you can afford right now because it will come in handy if things take a turn for the worse.
If you are struggling to pay your bills, don’t skip payments as doing so will affect your credit score. Contact your creditors before missing a payment to see if they can help. Due to the crisis, many Malaysian banks and financial services institutions have expanded their ongoing financial assistance programmes to help ease their customers’ financial burdens.
Some of the assistance offered include:
- Restructuring or rescheduling of instalment repayments
- A moratorium of up to six months
- Deferment of financing servicing for up to six months
- Waiver of late charges for financing
- Temporary deferment of loan repayments
- Restructuring of instalment repayments As each bank or institution has different types of assistance as well as terms and conditions, do contact your respective bank to know how they can specifically help you regarding your issue.
Make payments on time
Credit scores are impacted by late or missed payments. Attempt to make at least your minimum monthly payments by their due date. Try to maintain timely repayments even if you’re only paying the bare minimum required.
Consult financial experts
For those with investments, savings or retirement accounts, the market fluctuations could cause significant concern. Before you make any hasty decisions with your investments, consult financial experts where you invest or your bank.
Stay on top of your credit
Regardless if you’ve missed payments in the past or not, staying on top of your credit health is always a good idea. When you get your updated credit report, you will be able to see what part of your credit health needs fixing, which payments you have missed and how many. Then, you can start taking steps to fix issues if needed, as well as continue to monitor your credit health.
Established in 1990, CTOS is a leading credit reporting agency under the ambit of the Credit Reporting Agencies Act 2010. Its three-digit CTOS Score will show your creditworthiness. It is an evaluation of an individual’s credit history and capability to repay financial obligations. The higher the score, the higher your chances of securing a loan. Get your free MyCTOS Score report at https://rewards.starproperty.my/ctosscorecheck when you register with CTOS.