If you are like most people, you might be having some financial struggles due to the coronavirus. Millions of people are struggling with their bills, but the good news is that help is available. Here are some tips on taking care of the most pressing issue

• Author: Jeffrey Simmons
• Posted: 2024-08-03

 

Mortgage and Rent Payments

There are a number of major mortgage lenders that have said they will work with borrowers who are having financial issues by reducing or even suspending payments. You should contact your lender immediately in order to learn more about your options.
Fannie Mae and Freddie Mac backed mortgages, which account for about half of all US-based mortgages, have also suspended all evictions and foreclosures. They have also expanded their forbearance program, which helps homeowners to suspend their payments for up to a year. Talk to your mortgage company to find out more about this.

The federal government has also taken the step to halt any evictions or foreclosures for mortgages that are insured by the FHA, Federal Housing Administration.

If you are a renter, it could be a bit tougher. Your options are limited by who you rent from and where you live. You should contact your property management company or landlord if you are having financial issues and ask what options you have. If you live in some cities, like San Francisco, Boston, or Seattle, you also might be protected from eviction by city law.
 

Utility Bills

Electric, gas, and other utility providers generally have assistance programs in place for people who are having trouble paying their bills. In addition to this, there are also programs out there from the government and charities that help struggling and low-income households. You can talk to your utility provider for a referral, or you can call 2-1-1 to learn more about charities in your area that might be able to help.
 

Health Insurance

If you have been laid off and lost or losing your health insurance, you also have options. For instance, COBRA is a type of insurance that is specifically available for those who have been laid off. It can, however, be quite expensive. Another option is to go on your partner's insurance, which is usually a possibility, as a lay off is typically considered a life event.

There are also a handful of states that have allowed their citizens to jump into their insurance exchanges, which might allow you to buy insurance from the health insurance marketplace. Generally, this is only open during the open enrollment time, but again, a lay off is considered an exception.

It is also possible that you could qualify for your state's Medicaid program.
 

Paying for Debt

Paying off your debt is also a concern for people who are having financial issues during this pandemic. If you are struggling to pay your auto loan, credit card bills, or other debt, it is important to speak out to your lender. Federal regulators have instructed creditors to work with borrowers that have been impacted by coronavirus. Several banks have announced that they are working with struggling customers to waive fees, lower interest rates temporarily, or offer other payment arrangements.
 

Paying Student Loans

If you have a federal student loan, you can now get an emergency administrative forbearance. This allows you to postpone your payments for up to 60 days. You can apply directly through your provider.

The interest rate for federal loans has also been lowered to 0 percent, which means your entire payment is applied to your principle. Additionally, the government has temporarily stopped wage garnishment and collections for those who have fallen behind. If your student loans are from a private lender, you should contact that lender.
 

Considering Your Budget

It is also important at this time to make sure you are sticking to a budget and temporarily cutting any non-essential expenses. This could mean anything from stopping your gym membership to lowering your internet speed or the number of cable channels. If you can, try to pick up a part time gig for some extra cash, such as babysitting, as people who are still working may no longer have access to daycare.

Even though we may be facing a financial crisis, there is help out there, even if you have been laid off or had your salary cut. There are also options like taking a loan out from a loved one or collecting unclaimed funds. All you have to do is talk to your lenders and think outside of the box.