Protect Your Finances

While actions are necessary to help reduce exposure to COVID-19, extended business closures may bring financial uncertainty for many people experiencing a loss of income. If you are facing financial difficulties, having trouble paying your bills or meeting financial obligations because of the current situation, here are some resources to protect and manage your finances: 

1. Contact lenders and loan servicers if you’re not able to pay your bills on time. Be prepared to explain your situation, how much you can afford to pay, and when you’re likely to be able to restart regular payments. 
2. When it comes to auto loan payments, your lender may have options that will help. Ask about changing the date of your payment, requesting a payment plan, and asking for a payment extension. Failing to make a payment can lead to serious repercussions. It is better to contact your lender than to do nothing. 
3. If you have student loans from the federal government, payments and interest actual are postponed until September 30th, 2020. If not, you may still qualify for delayed or reduced payment programs. Just remember, in general, interest will continue to accrue even though you don’t make payments now. You will have to make up these amounts eventually. Click here for more details. 
4. Work with HUD-approved housing counselors and reputable credit counselors to understand your options. Counselors can advise you on managing your money and debts, help you develop a budget, help you get a copy of your credit report and scores, and provide other free resources. In extreme cases, they can organize a formal debt management plan to pay down your debts. Click here to enter your zip code and find a housing counselor near you.
5. Research best-practices for negotiating realistic repayment or settlement proposals with debt collectors. Check out this resource from the Consumer Financial Protection Bureau to get started. 
6. Check your credit reports to make sure your statements are accurate and that any accounts are correctly labeled as “in deferment” if applicable. Head to www.annualcreditreport.com to get your annual, free copy of your credit report from each of the three major credit reporting bureaus. 

Source: Consumer Financial Protection Bureau. www.consumerfinance.gov