
Triage your bills
Financial expert Clark Howard
recommends putting your most basic needs, including food and shelter, before
any other bills now. Make sure you can feed your family before using your
limited resources for loan payments or credit card bills. Similarly, your
family needs a place to live, so mortgage or rent payments should be next on
your list.
Housing costs
On March 18, the President
announced the Department of Housing and Urban Development (HUD) will
immediately halt “all foreclosures and evictions” for 60 days.
Also, in early March, the
Federal Housing Finance Agency offered payment forbearance to homeowners
affected by COVID-19, allowing them to suspend mortgage payments up to 12
months. These loans account for approximately 66 percent of all home loans in
America. They will eventually need to be covered, though conditions for
repayment vary by lender.
Speak to your lender about
your options before making a decision.
If you’re a renter, be open
with your landlord. We’re all going through this unprecedented time together
and they may be willing to work with you.
Paying for transportation
Missing an auto loan payment
can mean risking repossession of your vehicle. This should put car payments
next on your list of financial priorities. If meeting that monthly payment is
impossible right now, it’s best to communicate with your lender and come up
with a plan that is mutually agreeable to both parties.
Household bills
Utility and service bills
should be paid on time each month, but for workers on furlough due to the
coronavirus pandemic, these expenses may not even make it to their list of
priorities.
Most states have outlawed
utility shutoffs for now. Also, many providers are willing to work with their
clients. Visit the websites of your providers or reach out to them by phone to
see what kind of relief and financial considerations they’re offering
consumers.
Unsecured debt
Unsecured debt includes
credit cards, personal loans and any other loan that is not tied to a large
asset. Clark urges financially struggling Americans to place these loans at the
bottom of their list of financial priorities for now. At the same time, he
reminds borrowers that missing out on a monthly loan payment can have a
long-term negative impact on a credit score.
Here, too, consumers are
advised to communicate with their lenders about their current financial
realities. Credit card companies and lenders are often willing to extend
payment deadlines, lower the APR on a line of credit or a loan, waive a late
fee or occasionally allow consumers to skip a payment without penalty.
Community Financial Credit
Union is here to help members affected by COVID-19 (Coronavirus). Several
options are available for members who
have been negatively impacted and we will work with you to provide assistance
during this challenging time. If you or
your household has been negatively impacted by this virus and are seeking a
personalized solution, please call our Member Contact Center at (877)937-2328 to discuss your
situation. We’re here to help!
Your Turn:
How are you prioritizing your bills during the pandemic? Share your tips with
us in the comments.
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