Managing money during difficult economic times
WAUSAU, Wis. (WSAW) - Coronavirus is taking a fast an unprecedented toll on our economy. And it’s something that may take until the year 2028 to rebound from.
It’s left many Americans in a difficult situation.
“There’s nothing as deep and fast as this recession.” Dr. Menzie Chinn, a professor of public affairs and finances at the University of Wisconsin- Madison, said.
A new forecast released by the US Congressional Budget office Thursday says that the economy won’t take until 2028 to rebound to the levels they should be at. While they will return to 2019 levels by the year 2021, they will still be far behind where they would be had this year’s recession hit.
And those benefits that are helping small businesses and the unemployed expire at the end of this month. That creates uncertainty for many Wisconsin workers.
“The quicker we get the COVID-19 under control, the quicker the economy can kind of return to normal,” Explained Dr. Kevin Bahr, a professor of finance at the University of Wisconsin- Steven’s Point.
People may be finding themselves in a difficult situation. It’s difficult to replace the income. One idea is to find another job, even a part-time one.
“If you can get another job to replace the income temporarily, that would be the ideal situation.” Tom Batterman, a Financial Fudiciaries advocate, said.
But that isn’t always possible. If you are struggling with rental payments or mortgage payments, Batterman says some banks or landlords have been lenient on payments.
“Anything you can do to cut down on your monthly expenses would be good,” Batterman explained.
For mortgages, extending the terms or even refinancing may be a good option.
“You may see a significant reduction in the interest percentage which is a reduction in the percentage in the amount of payment you are going to have to make,” Batterman said.
Those may help in the short-term. But just remember, this will pass.
“Things will get better. It’s going to take a while, but things will get better,” says Dr. Bahr.
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