The road to recovery from this crisis is full of unexpected twists, turns, and financial challenges. As you start having new questions, Wells Fargo is here to provide you with information to help you manage your finances in today’s world and develop a better picture of your financial reality.
How might consolidating my debt help lower my monthly payments?
Debt consolidation may be a good option if you’re trying to pay off higher-interest loans and credit cards while managing multiple payments. Paying off debt with a new lower-interest loan and a single monthly payment may help you lower your overall monthly expenses and create more flexibility in your budget.
How can I start to rebuild my savings?
While the effects of the ongoing health crisis may have drastically changed your budget, it is possible to get back on track. Creating and maintaining a savings plan that matches your current financial situation may be the best way to build towards the future. If you don’t have 3-6 months of cash savings to fall back on, now is the time to redirect your attention to creating a cushion for yourself. Start by taking a look at your expenses to determine what’s necessary and what you may be able to cut back on.
How should I approach saving for retirement in today’s climate?
Saving for the future, especially retirement, is a well-known best practice for building financial stability. When developing your retirement savings plan it’s best to base your investment decisions on when you’ll need access to your money. Generally, it’s best not to pull investments when the market is down. If you’ve already begun investing in a retirement account think carefully about whether or not it’s the right time to withdraw from it.
Is now a good time to invest?
During an economic downturn there are often unique opportunities for high-risk and potentialy high-reward investments. If you’re feeling confident about your financial picture (including your savings and debt repayment plan) and would like to take advantage of such opportunities, now might be a good time to meet with a financial advisor for guidance. However, if you are generally risk-adverse, close to retirement, or have limited savings accrued, now may not be the right time to take on new investments.
Wells Fargo is with you as you embark on your road to recovery. To learn more about our COVID-19 relief efforts visit wellsfargo.com/heretohelp.
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