Credit Recovery After the Pandemic

With the pandemic winding down, unemployment subsidies ending, and so many people headed back into the workforce, millions of people are beginning to see a return to a normal life.  Others among us have never not had a normal life.  And yet others have lost nearly everything and find themselves having to start over completely.  If you’re one of the ones who lost your job, your home, your car, or your business, you’re probably starting the process of picking up the pieces, and unfortunately, that is not going to be an easy task.  Even now, as we write this post, the economy continues to suffer – joblessness is still a huge problem, inflation is soaring, and many people find themselves owing back rent in the thousands of dollars.  Where do you even start to recover?

First off, one of the most important things that you can do is simply to figure out where you are in all of this.  Do you have a job?  A place to live?  A car?  How much money do you have in the bank?  How much debt do you have that you need to get under control? If you’re not sure, the best thing to do is to sit down and make a detailed list of what you have, where you are, and where you need to be.  Write down every source of income.  Every bill that you owe.  And make a plan to tackle them, one at a time, over time.

Unfortunately, the debt is likely going to be your biggest hurdle – personal bankruptcies are expected to soar over the next few months to years.  Why?  Because so many of us will simply not be able to recover from the losses incurred during the months of layoffs, lockdowns, and, of course, illnesses.  For those people, bankruptcy will likely be the best option.

But what if you’re able to get a job paying close to what you were making?  What if you are able to catch up over time?  How do you recover from the damage that’s been done to your finances?  To the damage that has been done to your credit score?  To your credit report?

Once you’ve figured out where you are, then you can figure out what you can do.

For example, should you get a personal loan to pay off credit cards?  And if so, which ones offer the best options?  Keep in mind that inflation is soaring, and that means interest rates are going to go up, as well.  So, if you need a personal loan – don’t put off getting this done!

Maybe you need to replace your car but there’s a ding or two on your credit report?  Or maybe you just want to refinance it so you have a little breathing room financially?  If so, investigate those options quickly.  The interest rate on car loans is going up, too!


What about your credit cards?  Are they maxed out?  Could you save money on interest if you changed credit cards?

Maybe you don’t have a credit card?  Or you lost yours to bankruptcy?  If so, you can start rebuilding your credit score today with a secured credit card or even a credit card company that works with people who have damaged credit.

The most important thing that you can do right now is to simply GET STARTED on your finances.  Make the calls, fill out the applications, and get yourself back on track to thrive!