The impact of COVID-19 has caused many Americans to suffer hardships, one of which is struggling to pay bills. But take heart; there are solutions. Here are a few areas in which creditors are working with people to alleviate some of the stress.
Fortunately, the Coronavirus Aid, Relief and Economic Security Act, allows for mortgage forbearance, which if you’re financially compromised because of COVID-19, you can temporarily suspend payments. Also, the Federal Housing Finance Agency is allowing mortgage servicers to permit homeowners to delay payments if the notes are backed federally or by a Government Sponsored Enterprise, which includes Fannie Mae or Freddie Mac, FHA, VA or USDA. If you don’t know who services your loan, you can check Mortgage Electronic Registration Systems. If your mortgage isn’t federally backed, ask your lender about your options. If you need more help, contact a Housing and Urban Development approved housing counselor or local legal aid organizations.
Good news here! The CARES Act also includes a 120-day moratorium on evictions if you rent from a landlord who has a federally backed mortgage. If your landlord doesn’t fall into this category, contact them immediately. If you have any assets to sell, that’s an option. Hop on eBay or Craig’s List. If you have a 401(k), the IRS allows you to make an early hardship withdrawal. When all else fails, contact Just Shelter, an organization that advocates for affordable housing.
More good news! The Department of Education is granting students a payment waiver for at least 60 days with zero percent interest. But you have to do some legwork; it’s not automatic. Call your loan servicers to make sure your loan is eligible. This exception doesn’t apply to private student loans. However, Sallie Mae, one large private lender, said it’s offering suspension of payment for up to three months. Get in touch as soon as possible with whoever holds your loan to start the conversation.
Some utility providers are refraining from cutting off services for nonpayment, which is a relief. Also, quite a few Internet companies like AT&T and Charter Communications have agreed not to end service for residential or small-business customers who can’t pay their bills. To find out the details and policies from your providers, check their website or call.
Major credit card issuers are offering relief to customers who’ve been affected by COVID-19. American Express, for example, is providing assistance through its financial hardship program. But beware of scammers who send out fake emails from said creditors about the virus; they’re trying to steal your personal and financial information and/or infect your computer with malware. If you have doubts about any communication you receive from your financial institution, email or call. Don’t take any chances.
Right now, life might feel overwhelming. But know this: we’re all in this together. And the upside is that many companies are stepping up to lend a hand.