The thought of being hit by a major economic crunch that jeopardizes your financial well-being can cause sleepless nights. Especially when it’s inevitable, like the current COVID-19 crisis.

But you can take measures to mitigate the effects. The government, along with banks have taken a step to relieve the impact. There’s  support for businesses  and banks are ready to extend a 6-month mortgage holiday to those whose incomes are at risk.

But you can do so much more. You could come out of this crisis better. Here’s how.

Take Advantage of Government Relief

A few weeks ago, the  government made public its response package  to counter the economic impact of the COVID-19 crisis. The initial package was costed at about NZ$12.1 billion. However, new figures indicate that it will cost about NZ$17-18 billion.

In the package, there are measures to support small businesses and the self-employed. Some of the approaches include wage subsidies and credit guarantees. Apart from this, the  government announced  a mortgage holiday deal with retail banks. The banks will extend a 6-month mortgage holiday for homeowners and business owners whose incomes have taken a hit from the COVID-19 crisis.

These are great measures. However, taking a mortgage holiday might not work out very well for your long-term financial wellness. After all, during the holiday the mortgage will still accrue interest. You will have an inflated mortgage bill after the holiday is over.

Consider switching to an interest-only mortgage payment plan.

Review Your Expenditure and Reconsider the Mortgage Holiday

If you are wondering how you will keep up, even with interest-only mortgage payments, we say look within. Have a second, third and even fourth look at your expenses. A mortgage holiday may give a false impression of lower expenses. But as sure as this crisis will be over, your mortgage payment will resume. But it will be bigger.

Try and cut down on all that is not necessary and channel the funds to more important payments. Like interest-only mortgage payments.

You can begin by looking into your financial contracts. For instance, you can cut down high-interest debt like your credit card bills. You can also review your insurance commitments.

Don’t seek to scale down the insurance. We all know how handy an insurance cover can be. Instead, look for ways to enhance it. Scope the market. Check if you can find the same kind of insurance plan, but at a lower rate. But remember, a good insurance cover prevents a crisis from piling to another.

You can do the same for your home loan. Rather than scrambling for a mortgage holiday, ask yourself, do you have the best deal? A mortgage broker can help you find a better deal and lower your mortgage payments.

Seek Opportunities to Enhance Your Productivity and Earn an Extra Dollar.

If you have a hard time getting sufficient sleep, exercise or opportunities to read, take advantage of less commute and do more of these activities.

On the other hand, explore your abilities to earn some extra cash. Whether it’s selling stuff online, or even freelancing. The extra cash may seem insignificant, but even small amounts can go a long way to help assure your financial recovery and prospects. Don’t forget,

By the time this crisis is over, you should be: more productive, better equipped to make more money, sharpened in your budgeting skills and with a lower mortgage bill.