6 Ways to Help Families in Financial Trouble

COVID 19 has taught us to deal in every possible situation. Many people have not been affected only mentally but it has impacted the financial health as well. Due to the pandemic, many people have lost their jobs which have caused a major rise in unemployment. Hence it is important to help our loved ones in their hardships. Here while helping the families, you can consider understanding the kind of a problem whether it is a permanent one or a temporary one. After this even if you decide to help make sure to get into the agreement whether you wish to help as a gift or on a specific repayment term. You can either pay them in cash or pay their bills. Here are few ways through which you can help your family or loved ones in their difficult times.

Give a personal loan

There are times when your family members can ask you for a favour in terms of a loan. In this case, you can get into the contract for the same and make sure to get it signed by both parties. This will help you to be clear on the financial arrangement and the repayment terms as well. Here you can mention all the details in the contract such as the total loan amount, the rate of interest on which you will be offering the loan, mention the disbursement type whether you will be giving in a lump sum, partial or in instalments, due dates for repayment and the steps for recourse as well in case if the other person fails to make the payment due to any reasons.

Pay their bills

Another way through which you can help your loved ones is by paying their bills. Most of the people exhaust their pay in making the payment for various bills. In this case, you can take the charge to pay their various bills such as utility bills, rent, mortgage and even insurance. You can pay these bills easily online at http://deferit.com.au/. This will help them to reduce the financial burden. If they need any financial assistance for the short term regarding their bill payments then you can consider getting into the same.

Give cash a gift

Lending cash is always the best option to help your loved ones. If your loved ones are in financial trouble and if it can be solved by offering a little bit of cash then you can consider this option. You can decide this amount depending upon your financial capabilities. If you can not afford to give it at once then you can even consider paying cash in instalments until the situation is resolved. Since you will be giving this cash as a gift make sure to let them know about it. If you are going to give a huge sum of money then you can consider the fact of an annual gift tax.

Provide employment opportunity

The third best way through which you can help your loved ones to come out of financial worries is to offer them an employment opportunity. Most people face financial issues due to unemployment. If he or she already has a full-time job and is still facing financial issues then you can help them get the additional or side job to fuel the income. If you are in a business then you can provide this opportunity at your company. Here also make sure to get into the agreement with them while hiring regarding the duration and the pay to avoid further confusion.

Get into as a co-applicant for the loan

If the person is not eligible to get the loan for himself then you can help him by getting into the co-application for a loan. If they require any help as a co-signer for getting a good line of credit then you can consider getting into the co-application of the loan. Since you will be binding yourself here to repay the loan if the other person fails, you would need to make sure that you are financially strong. If they fail to pay the loan on time then it can affect your credit score which can get you into trouble. Hence make sure to get a copy of a credit report of a person for whom you will be applying for the loan.

Give gift cards

Last but not least is to give gift cards to get them out of financial worries up to some extent. Here you can give gift certificates or gift cards. Generally, these gift cards come in certain denominations. Hence you can decide how much you wish to pay the other person. These gift cards are easily available at respected stores.

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