Happy Home InsiderDid you lose your job due to the coronavirus? Have you been furloughed or lost income due to fewer hours? Are you finding it almost impossible to pay your bills? Whatever the issue may be, here are some tips to stay afloat until this all blows over.
If You Cannot Pay Your Bills:
Although finding alternative sources of income can help you meet your monthly budget, contacting lenders and companies should be your first move. In doing so, you can see if they’ve instituted any measures in response to COVID-19 that could give you some breathing room.
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When it comes to student loans, for instance, you may not have to pay anything until September 30, 2020. This is because government-held student loans have stopped the need for payments to allow borrowers to get back on their feet.
If your student loans are privately-held, however, this may not be the case. And if you don’t contact them now to relay your situation or see if they’ve frozen payment requirements, you could ruin your credit.
Whether it’s a student loan lender or credit card company, contact them now to see if you can achieve any of the following:
- Waived late fees
- Postponed or skipped payments
- Payment plans
- Reduced payments
Any of the above can make your situation much more manageable, even if you’ve lost your job or have reduced income.
When contacting companies, be prepared to explain your situation in detail. While they may be able to offer help, specifics may be required to change payment terms.
As for what type of information they may ask you to provide, here’s an essential list of what to have handy:
- Your current situation, which may include details on income, expenses, and assets.
- How much you can pay.
- When you can pay.
Contacting companies to keep your credit intact is just one way to alleviate financial stress at this time. Another is to solicit the help of counselors who can give you the lowdown on the best options available.
In terms of housing, HUD-approved counselors from the U.S. Department of Housing and Urban Development can help if you have issues with your mortgage. But if you’re having trouble with paying rent or finding affordable housing in general, they can help there too, as you may qualify for the Section 8 program.
If credit card debt is a significant issue, debt settlement companies (as long as they don’t require upfront fees) can give you the assistance you need to make your debt fit your limited budget. Another option here is to find a credit counseling organization that may be able to negotiate with creditors on your behalf.
Should you prefer to tackle your credit issues alone, know that debt collectors may be able to work with you on setting up a realistic repayment plan.
As you make all of these moves, be sure to check your credit report routinely to make sure it’s accurate, as any incorrect information will need to be removed to keep your score as high as possible.
If You’ve Lost Your Job or Income:
The CARES Act is a recently passed stimulus bill from the government that provides some income assistance via one-time checks and unemployment benefits to those who qualify.
Beyond that, you can also seek assistance on the state or local level by contacting your state’s unemployment office or your state’s public health office. For older adults, the National Council on Aging’s benefits website may be of help as well.
