(Blog) Steps You Can Take Now If You Need Financial Relief

Steps You Can Take Now If You Need Financial Relief

Over 40 million Americans have filed for unemployment since the Coronavirus pandemic began. While the government works to decide how it will provide relief to Americans in financial need, bills are still due and many Americans may be wondering how they can make ends meet right now.

If you are struggling financially, there are steps you can take for temporary financial relief. Consider these four strategies.

Contact your utility companies

If you can’t afford to pay your bills today, some companies are offering temporary relief for customers impacted by the Coronavirus crisis.

For example, major utility companies such as Comcast and Duke energy are offering waived late fees or are promising not to disconnect services due to nonpayment during the pandemic.

One way to determine if your associated company is offering any relief is to run a Google search of its name and the term “Coronavirus relief” to see if its website outlines any hardship programs available. If the information isn't available online, picking up the phone to call and explain your situation could result in some type of agreement with the company.

Remember to get any payment agreement from a company in writing with a detailed outline of its terms, and always ask how any hardship program might affect your credit score.

Take advantage of forbearance periods

Under the CARES Act, there are multiple federally mandated forbearance periods on payments like federal student loan payments and federally backed mortgages (including mortgages serviced by FHA, VA, USDA, Fannie Mae and Freddie Mac).

Federally backed mortgages can have payments deferred for up to 180 days by contacting the loan servicer, with the option to apply for another 180 days of nonpayment by the borrower (interest will still accrue during this time). Federal student loans currently have 0% interest and payments suspended until the end of September.

While forbearance periods offer payment relief for now, it’s crucial to understand how interest will be handled during the nonpayment period, and how payments might be due once the forbearance period is over. While researching your options, be aware if interest will continue to accrue during nonpayment and ask when the missed payments will be due. The repayment requirement can vary: All the missed payments could be due in one lump sum at the end of the period (which may or may not provide much actual relief), your monthly payments going forward could increase to make up the difference or the extra payments may be added on to the end of the loan.

Make the most of the money you have

If the above steps don’t work, or don’t apply to you, it’s easy to get nervous thinking that the money you may have left could run out completely. In that case, it’s time to take action by devising a plan to make every single dollar have a purpose once it leaves your bank account.

Utilizing a zero-based budget during this time can help you avoid unintentionally wasting money while your finances are going through volatile times due to the Coronavirus crisis. You can start implementing this strategy now by sitting down and creating a budget—just for this month.

Look at how much money is coming in during the month, and then seriously consider how each dollar will be spent. If you’re looking to cut costs in categories, there are multiple ways to save money right now, including shopping around for new insurance and planning “no spend” days each week.

Bottom line

It’s unclear when another stimulus package will be passed into law, but there are actions consumers can take now for financial assistance and relief. Contacting utility companies, being smart about spending, and taking advantage of forbearance periods could help more Americans stay afloat while waiting for more guidance and relief from the federal government.

If you need help with your debt, you can speak to one of our Certified Debt Consultants at the number below:

If you need help with your debt, you can speak to one of our Certified Debt Consultants by clicking the button below:

SPEAK TO A DEBT CONSULTANT



https://www.forbes.com/sites/advisor/2020/06/01/with-another-stimulus-check-looking-less-likely-here-are-steps-to-take-now-if-you-need-financial-relief/