It came on so fast. We were all living our regular lives one minute, and then we were being asked to shelter in place the next. The coronavirus pandemic has impacted us in many ways, including financially. According to the US Bureau of Labor Statistics, the number of unemployed persons rose by 10.3% equaling a total of 23.1 million in April 2020. Twenty-three million workers who are unemployed means that there are massive amounts of people who no longer have that income source to pay bills. Let’s discuss the negative impact the coronavirus is having on your family’s finances and how to protect your credit.
Not Having a Job Means No Income
It is painfully evident that not having a job typically means no income, and without money, how will you pay your bills and take care of your family? In 2019, a survey conducted by Charles Schwab determined that 59% of Americans live paycheck to paycheck, which means a majority of workers don’t have any money saved for emergencies. If you are someone who has lost their job due to the pandemic and don’t have any savings to cover lost income, you are experiencing a substantial financial burden in a scramble to pay your bills.
Communication is Key When You Can’t Pay Your Bills
You have no money to pay for your house, credit card, or car loan payment, etc. What is the next step you should take?
- Call your lender and other companies you pay bills to work out a modified payment plan immediately. Inform them on what is going on with you financially; there will likely be some options, and the last thing you want to do is ignore the problem and have to deal with other issues later, such as a poor credit score, collectors, and more.
- When you are communicating with your lender to work out a new plan for your payments, your credit should remain stable. Due to the CARES act signed on March 27th, “the law states that if you and a lender agree to modify your loan payments due to the coronavirus temporarily, the lender should continue to report your account as “current” as long as you fulfill the terms of the modified payment plan.”
Making it Through This Time
No one expected the financial impact brought on by the pandemic. Remember, you are not alone in your struggle to pay your bills and provide for your family. Reach out to us today to find out how we can help you during this time!