No-one could have predicted the huge impact the global pandemic Covid-19 would have on our economy. As the virus entered our shores, the country effectively shut down. We saw cafes, restaurants and shops close their doors. Many people have been working from home for months now. Social distancing is now the new norm, as we are encouraged to keep our distance. This is our new reality. While we have managed to flatten the curve with the virus, unfortunately, it took the closure of many businesses and the loss of even more jobs. Fortunately, the Jobkeeper Payments scheme was brought in by the Australian government to help businesses significantly affected by the virus.
The impact of the Jobkeeper Payments has been huge, helping people retain work and boosting the economy. It has also allowed struggling families to stay on top of their debts by taking out debt consolidation loans.
What Are Jobkeeper Payments?
The Jobkeeper payment scheme was brought in to help businesses that were significantly affected by Covid-19. Instead of laying off their workers or standing them down, businesses have been encouraged to apply for the payment. This provides $1,500 per eligible employee, per fortnight.
The main aim of the payments is to keep as many Australian employed as possible. For businesses forced to close due to Covid-19 restrictions, or simply unable to stay afloat under the new climate, standing employees down was the best option. The government stepped in to subsidise wages for businesses impacted by the coronavirus pandemic. Thousands of businesses have been helped by the introduction of this scheme. Additionally, it has enabled as many Aussie’s remain in employment as possible until the economy opens back up again.
The $70 billion Jobkeeper package is available from 30 March 2020 until 27 September 2020. Employers received the first payments from the Australian Taxation Office (ATO) from the first week of May. The ATO is administering this program. The impact of jobkeeper payments has been far-reaching. This has allowed many Australians to stay home and self-isolate, while still holding onto employment. As we flatten the curve and restrictions ease, many businesses are starting to reopen and find their feet again. Now, many more Australians have a job to go back to thanks to these payments.
But the impact is even more far-reaching than already explained. It also allows struggling individuals and families to use these Jobkeeper payments to take out new loans.
Impact Of Jobkeeper Payments On Debt Consolidation
One of the great benefits of Jobkeeper Payments is that some lenders are accepting it as a wage to apply for a loan or debt consolidation. As Australia suffers from an upturned economy, many individuals will be feeling the full effect of this in their households. Some may have taken out extra loans or overspent on credit cards to help them survive from day-to-day. Thankfully, people can now get back on their feet with the help of Jobkeeper Payments. Enabling people to receive a wage, as well as still apply for loans has been a breath of fresh air.
What Is Debt Consolidation?
When you find yourself with too many different debts, it can be both confusing and overwhelming. This is the main reason many people apply for debt consolidation. It works by taking out a new loan to pay off all your current debts, so you just have one monthly payment to make. Debt consolidation comes with many benefits:
- Fewer payments to make: this will help you feel less overwhelmed with your debts. A single repayment enables you to more easily get on top of your finances and meet your payment deadlines.
- Better interest rate: you can shop around when consolidating your debts and try and find the best interest rate possible. You can combine all of your loans with different interest rates into one, fixed rate. This is usually a much lower rate than you would previously have been paying.
- Help your credit score: by finding a way out of debt, you will boost your credit score. If you can make the repayments of your consolidated debts on time each month, it will give you the best chance of not only paying off your debts, but also giving you a better credit score in the process.
Debt Consolidation and Jobkeeper Payments
If you are looking into debt consolidation to help you pay off your debts, then Jobkeeper payments are full of opportunity. Many lenders are accepting these payments as a wage, allowing you to consolidate your debts and get on top of everything.
Take Out A Debt Consolidation Loan
Are you looking to take out a debt consolidation loan while on Jobkeeper payments? The experts at Debt Consolidation help you out. Our expert team will give you the advice you need so you can get on top of your debts and back on your own two feet.