• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Financial Literacy

Balancing debt repayment and savings amid COVID-19 economic uncertainty

NM Personal Finance by NM Personal Finance
March 13, 2021
in Financial Literacy
debts overboard, Financial rules for managing your debt
Share on FacebookShare on TwitterShare on Linkedin

Though it majorly hit the world’s economy in 2020, the impact of COVID-19 is still felt in 2021. From running down businesses to causing major losses and leaving many people to wallow in debt, COVID-19’s impact was unexpected and wildly beyond our imaginations. However, regardless of previous happenings, things will have to go on, and businesses have found a way to deal with the losses. In essence, balancing debt repayment and saving amid the COVID-19 economic uncertainty is a must-have survival tool for all businesses and individuals.

Although the manner of approach may differ, ultimately business and life, in general, has continued as usual, and those who incurred great losses found a way to cope. Some through layoffs, while others through borrowing for cash flow influx. In 2021, every business and person is chasing stability, and although some have already come to that point, here are a few tips that could help you get there sooner if you haven’t.

Tips to balancing debt repayment and savings amid COVID-19 economic uncertainty;

RelatedStories

House of Reps, cybersecurity levy, CBN

House of Reps summons Shell, Oando, 46 other oil companies over N9.4 trillion debt 

March 3, 2025
Africa needs $74 billion for debt service in 2024 – AfDB 

Africa needs $74 billion for debt service in 2024 – AfDB 

December 17, 2024

1. Cut down expenses:

To start with, you have to cut down on expenses, and sadly it includes the unnecessary and necessary ones. Cutting down expenses involves the process of listing your needs according to priority, whether as an individual or business. Ideally, the list should not include your wants, and you should start by meeting those at the top (necessities for survival).

2. Run a full-scale audit:

Auditing is the best way to properly access the exact situation of things at hand. It should give a rundown of current debts and their respective interest rates. Lastly, it should also take into account your current savings, if any. The reason for carrying out an audit is to access things, especially pending debt, and start to pay them off from the order of the “highest interest rate”. For example, having a debt with an interest rate of 20% per annum pending while trying to save or invest in an asset with returns of 10% per annum is not a good idea. This is because this debt sum would grow faster than your investment. Also, a good rule of thumb is to dedicate a certain percentage of your income to paying off debt before considering other expenses.

3. Set realistic goals for saving and debt repayment:

Trying to save up while paying off debt is an excellent idea and should be something you consider. However, it is only achievable when set within the bounds of reality. The fundamental strategy to financial management is planning. This is why you should allocate your income according to certain realistic goals for saving and repaying your debt. Doing this with a high level of consistency would help you stabilize over time, depending on your percentage of commitment to each.

4. Make a solid emergency plan:

If there is anything that coming out of the pandemic should teach you, it is the fact that you need to plan for the unexpected. The COVID-19 took the world by surprise and overstayed its welcome, ensuring everyone expended their emergency funds. With that in mind, it is only wise to start taking emergency planning much seriously. Create a solid plan, commit finance to it, and ensure you stay observant for potential happenings. As a good plan, finance experts recommend that you have enough set-aside funds to cover at least six months of your running cost.

5. Keep an eye out for the future:

Lastly, nobody knows the future, and we all can only make predictions according to how things go. However, as much as possible, observe market trends and look out for innovations or downsizing that could affect your industry. These are potential indications through which you can predict what may be and prepare accordingly.

Conclusion

Balancing debt repayment and savings amid COVID-19 economic uncertainty for now and the future is all about planning and commitment. With enough of these two, you can pay off your debt and save considerably, and the tips discussed in this article would help you do just that. Although it might not be easy, it is achievable if you keep at it.


Follow us for Breaking News and Market Intelligence.
Tags: Covid-19debt
NM Personal Finance

NM Personal Finance

Related Posts

House of Reps, cybersecurity levy, CBN
Energy

House of Reps summons Shell, Oando, 46 other oil companies over N9.4 trillion debt 

March 3, 2025
Africa needs $74 billion for debt service in 2024 – AfDB 
Economy

Africa needs $74 billion for debt service in 2024 – AfDB 

December 17, 2024
New COVID-19 Variant XEC not in Nigeria – FG 
Health

New COVID-19 Variant XEC not in Nigeria – FG 

December 7, 2024
PDP calls for investigation into alleged fraud in Kebbi’s NG-Cares disbursement
Business News

PDP calls for investigation into alleged fraud in Kebbi’s NG-Cares disbursement

September 10, 2024
Oyo state government
Business News

FG never gave N570 billion to 36 States – Seyi Makinde counters President Tinubu  

August 9, 2024
Nigerian companies, NAHCO, Okomu Oil
Exclusives

Nigerian corporates shy away from capital market as cost of debt soars

July 22, 2024
Next Post
Nigerian Flour Millers report N591 billion in 2022 |

Shares of Flour millers gain a total N11.6 billion on NSE this week

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng

first bank
Zenth Bank








DUNS

Recent News

  • Scholarship programme for Caribbean students to study in Nigeria to begin next academic year- Tinubu 
  • University Staff Union slams FG over delayed salaries, demands harmonised payment structure 
  • CWG and CAVERTON lead gainers as All-Share Index dips slightly; OANDO prints N19.8 billion trading value 

Follow us on social media:

Recent News

AAM2025: Tinubu calls for PAPSS payment system embracement across Africa for financial integration 

Scholarship programme for Caribbean students to study in Nigeria to begin next academic year- Tinubu 

June 30, 2025
University Staff Union slams FG over delayed salaries, demands harmonised payment structure 

University Staff Union slams FG over delayed salaries, demands harmonised payment structure 

June 30, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics