3 Must Do Financial Strategies in the Face of COVID-19
For many of us, the stress of COVID-19 on our finances is overwhelming and uncertain. With rent due in less then a week, many of us will reach our financial breaking point. Here are some suggestions of things you could be doing right now to buy your finances more time.
Reduce your expenses.
A win in times like these is to save cash for an unexpected future and/or to minimize how much you add to your debt. Since most people live paycheck to paycheck, the best thing for your money in times like these is to hold onto it. Now is the perfect time to review your bank and credit card statements and reduce any bills you can. Categorize them as needs vs wants. To really test your “needs”, try defending them to your partner or friend. This is particularly helpful for people who are earning less money than they are used to or unable to earn any money at this time. If you need to use credit cards to get by at the moment, reducing your expenses will help you minimize how much debt you take on during this time. Minimizing your debt growth is a huge win in times like these.
Servicing debt? Call your lenders today!
Many lenders are allowing you to skip April’s debt payment. This is true for your mortgage, auto loan, student loans, and credit cards. But this won’t happen automatically, you have to call and ask. For example, Bank of America is letting customers defer payments, but you have to call and ask. I’ve also heard this from several other banks. Also federal student loan payments can be deferred but you have to apply. Here is a great article by Student Loan Planner that talks through how to do this
Renters also have options.
If you rent, ask your landlords to call their lenders as well. Maybe they don’t know they can defer their payment? If you’re in financial distress, look at paying half your rent on the first and waiting on the other half to see what the Congress relief package looks like. We should have a more clear view of this in the next week or so. If you chose to do this, be clear and upfront with your landlord. Open communication is key for all of us right now.
~ Tiffany Groode, Financial Coach
