Central, state and local administrations are making every effort to fight a deadly epidemic like Coronavirus or Covid-19. Patients of this epidemic are increasing all over the country. Also, businesses, schools, public facilities and functions have been temporarily closed or quarantined in some cases. These steps have been taken to reduce the devastation of this epidemic. But for this many people have also become money strapped. Many people are not getting money due to illness or office closures.
As you plan to avoid the possible effects of the coronavirus, there are several steps through which you can protect yourself and your family from shortage of money during short or long periods.
If you are short of money or unable to pay bills, then take these steps
If you are facing difficulty in paying bills or loans, then you have many options to help you, especially if you go quickly to the lenders.
Talk to your lenders and loan services
If you are unable to pay the bill on time, then tell your lenders and services about your situation. Default in payment will affect your credit for a long time. The Consumer Financial Protection Bureau (CFPB) and other financial regulators have asked financial institutions to work with their customers and meet their needs.
Credit card companies and lenders can provide you with many options to help. There are many charges like ATM, overpayments, late fees. They may also give you the option to skip some payments, repay late or adjust.
When you contact lenders, be prepared to answer these things:
– Your condition
– How much you can afford
– When will you be able to start your regular payments again?
– In case of pledge, discuss your income, expenses and property.
If you are facing difficulty in paying auto loan?
Your lenders have many options through which they can help you. In our advice, your payment date, payment plan and payment can be expanded.
If your student loan is going on?
You can pay late or choose to pay less. Remember that even though you do not need to pay now, the interest will continue to be charged and you will have to deposit this amount in the end. Ask for help from your student loan provider so that he can guide you through the options. If you have a federal student loan, talk to the service provider on other payment options.
Work with credit and housing counsellor to understand your options
These are experienced professionals, who give you advice for free or some money. They work with you, understand the situation, explore options and negotiate with your lenders and services.
HUD-Approved Housing Counsellor: If you are facing difficulties in repaying a mortgage loan or a reverse mortgage loan, The US Department of Housing and Urban Development (HUD)-accredited housing counsellor can discuss options with you. It may also include prohibition or a revised payment program.
Credit Counsellor: Renowned credit counselling institutions are usually non-profit organizations that advise you about money and debt and help you on budget. Many also help you negotiate with creditors. There are specific questions to help find a credit counselling organization to work with.
Check your credit report:
If you are working with lenders on payment assistance programs or restrictions, then make sure that the details are correct and there are no false reports of any kind. For this, check your credit report regularly. Your credit reports and scores play an important role in giving you financial opportunity in future.
If you do not have income?
The ways of each state and its local administration to help those affected financially by the corona virus may vary. Older people are more susceptible to corona virus and the process of quarantine is also different than the common people. Government facilities are available for senior people who need financial assistance.
Beware of scammers
In times of emergency or natural disaster, fraudsters find opportunities to cheat people. So be careful about e-mail, SMS and social media posts, which contain information about fake products or corona virus cases.
Keep seniors safe
Fraudsters often target the elderly as they have more assets and regular income in the form of retirement benefits. They also have a lot of savings. They talk comfortably and trust easily. Since the elderly are more at risk of falling ill, they can isolate themselves.
Social isolation is already an issue for the elderly and this can lead to many more issues, in which they may become victims of fraud. Virus prevention strategies such as social distancing and quarantine can also increase fraud. In such difficult times, when health officials are promoting limited connectivity, phone calls and video chats can help the elderly to stay connected with their family.