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Though unemployment is not currently on the rise and most are returning to work at least part-time, the pandemic has cost many people their livelihoods. As we slowly work to rebuild our economy, no one can argue that in these times of uncertainty, paying bills is doubly hard.
If you find yourself in a tough spot and unable to pay your bills on time or at all, it’s important to proactively work on a solution.
Prioritize Your Spending
When you have a certain amount of funding, you need to spend your funds carefully. Make sure to pay for your essentials first such as your dwelling, groceries, and your utilities. Next to pay off on your list should remain anything that allows you to perform work duties. These can include transportation costs, cell phone bills or even child care.
Good To Know
*The federal ban on evictions set forth by the Trump administration can still protect you until December 31st if you rent your property. However, you should always check with your local government as they may provide further assistance.
*It is also possible to get forbearance from mortgage lenders if you have suffered any type of financial hardship as a result of COVID-19. You may have to miss your mortgage payment, and if that’s your only option, make sure to discuss directly with your mortgage lender as they can help. A housing counselor at HUD can also help you if you’re facing foreclosure due to many missed payments by contacting them at 888-995-4673.
You Can Get Your Spending Back On Track!
Housing counselors aren’t just for mortgage payments; renters may benefit from getting in touch with them. Just Shelter is an example of a fantastic resource that can point you to any number of local organizations equipped to help you deal with your problem. Emergency rental assistance is yet another program that may directly offer benefits to you. Just log onto www.211.org to start the process of getting help!
Locally registered 211 organizations can help you with many aspects of your problem other than housing. They can assist with ensuring that your utilities and food are also taken care of. Many states have issued strict guidelines that utilities cannot get shut off for non-payment during the pandemic crisis, meanwhile, other companies have taken initiative and chosen to extend the same courtesy to consumers. You can also get basic utilities for a lower cost to help ensure your needs are met.
Car payments are a bit trickier. Refinancing your car is only an option if you owe less than what your car is valued at. In other instances, your best bet is downgrading your car to a more affordable option and selling the one you currently drive. Selling is still possible if you owe more than what your car is worth. However, in that scenario, you will need to apply for a loan in order to pay off the difference in value. You should avoid repossession at all costs as you not only still end up owing money, but your credit history will take a serious hit. In case it has already occurred, you can reach out to credit bureaus for guidance on how to remove repossession from a credit report.
Expenses To Consider Paying Next
Failing to pay your child support, taxes or your insurance also bears serious consequences. For failing to pay either child support or your share of taxes, the government has the ability to either seize your bank account or directly deduct what you owe from your incoming wages. Though jail is a possibility, it is reserved for offenders that deliberately commit tax fraud.
Choosing to not prioritize your insurance policies can also leave you vulnerable in unforeseen circumstances.
How You Can Get Help
Due to the pandemic, the IRS has extended tax filing deadlines and most states have also done the same. If this is still not a viable way for you to remit payment, make sure you explore other avenues.
For child support, you can consider going back to court. Doing so can amend the terms of your agreement.
If your insurance policy is too expensive, you can try talking to your provider about cutting certain benefits to lower policy costs. That isn’t always viable, in which case, shopping around for a lower priced policy is your best bet.
There are plenty of companies out there who can offer you advice and debt help too – it maybe well contacting them to see if they can shed light on a new solution.
How To Pay For Everything Else
Credit cards can help you fill in the blanks when you need a certain amount of money to pay off your bills in whole. However, it is important to at least have the ability to meet minimum credit card payments. Missing payments not only negatively impacts your credit history, but your account will go to collections and you may face a lawsuit. One way to make ends meet is to try Quick Payday loans by My Quick Loan.
Fortunately, student loans have so-called pause buttons. You can temporarily stop making payments and not have to face skyrocketing interest loans. Additionally, getting directly in touch with your current lenders can also yield a number of opportunities. Many financial institutions are offering assistance programs to help those in need affected by the pandemic.
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