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- Many companies understand that because of the coronavirus, Americans are losing jobs and struggling to pay their bills.
- If you have been financially affected by the coronavirus, you can ask companies about their late or missed payment policies.
- Some companies make exceptions for people affected by the coronavirus.
- You may be able to pause payments on memberships, credit cards, utilities, insurance, rentals, mortgages, auto loans, and government and private student loans.
- Read more about personal finance.
Lots of employees are unemployed or faced with short-time work Because US companies are temporarily closing to prevent the spread of the coronavirus. Lenders have compassion for people struggling to pay their bills during the pandemic.
Reaching out to businesses can potentially pause each of those eight bills – and make life a little less stressful during the outbreak.
1. Memberships and Subscriptions
It may seem like we are killing a dead horse by recommending that you cancel memberships and subscriptions to save money. But while people usually tell you to cut out frivolous expenses like streaming services, this isn’t necessarily the best move.
After all, you will be spending a lot of time at home. Now is really the time to erase yours
Netflix
Account?
Instead, think of expenses that are no longer relevant while isolating yourself. If your gym is closed indefinitely, pause your monthly payments. If you are a season ticket holder, get one Amusement park that has closed or for a Sports team whose season has been canceled, call the ticket office to discuss the cancellation.
In some cases, you might want to ask if you can pause a membership instead of canceling it. For example if you Abort With your gym membership, you may have to pay the join fee again when you finally return. Hopefully pausing payments will eliminate these additional costs.
2. Credit card payments
Nobody wants to miss a credit card payment. Failure to make a minimum payment on time can damage your creditworthiness. If you miss it pay out the full account statement you have to pay interest every month.
Thank God, many credit card issuers are taking precautions for borrowers financially affected by the coronavirus. Companies encourage these members to contact a representative to discuss their options. Some issuers allow people to skip payments without incurring interest.
3. Utilities
Companies like CenterPoint Energy, Xcel Energy and Minnesota Power have announced You will not shut off the flow of customers if they cannot pay at that time.
Charter installs free WiFi and broadband for new customers and stays free for 60 days. Arvig offers free internet and WiFi to new customers who have K-12 or college students in their household. These customers don’t have to pay until schools reopen.
Check to see if your utility has already announced exceptions to online payments. In this case, call the company and describe your situation. You can still call them if you can’t find information about special circumstances online. It is possible that they are still ready to work with you.
4. Payments for federal student loans
According to the CARES law Federal student loan payments are suspended until 09/30/2020. During this time there is no interest. You will not be penalized for skipping these payments, and it will not affect your credit score.
The CARES Act applies to direct federal student loans owned by the Ministry of Education. Personal loans, refinanced loans, and FFEL and Perkins loans owned by private companies or colleges do not qualify for forbearance under the CARES Act.
The Department of Education has suspended all federal student loan payments, so all automatic payments will be suspended. If you want to keep making payments through September 30th To clear the debt faster, call your student loan broker to restore automatic payments.
If you signed up for a student loan pardon program but miss payments by September 30th, those months will still count towards your required number of payments to receive a pardon even if you don’t pay anything. In order for these months to count towards your PSLF points, you must still be employed full-time during this period.
If you’ve been paying a federal student loan since March 13, you can contact your servicer to request a refund.
5. Payments for private student loans
Many private student loan companies encourage borrowers to contact representatives to discuss payment options. Some make exceptions for people financially affected by the coronavirus.
Some lenders already have guidelines in place to accommodate borrowers who are unemployed. For example, Wells Fargo’s Credit Modification Program lowers your monthly payments. It also offers short-term payment relief that lasts two months. Most lenders also offer forbearance, although terms vary.
6. Insurance benefits
Several well-known insurance companies are making exceptions for people affected by the coronavirus. For example, freedom offers
Car insurance
Customers 15% refund on two months premiums and GEICO offers a policy credit of 15% until October 7, 2020.
Call your insurance providers to ask if they are ready to adjust to your situation. Even taking a month or two off payments can help ease your financial burden.
7. Rent or mortgage payments
Numerous cities have temporarily banned landlords Eviction of tenants who cannot pay the rent. Whether or not your city has issued an official position on evictions, contact your landlord to discuss your job loss. You may be able to set up a payment plan or defer payment for a month or two.
For homeowners, federal mortgage loan companies Freddie Mac and Fannie Mae offer indulgence for up to 12 months and starting July 1st. You can request that the repayment be postponed until you sell, refinance, or pay off the house in full.
Some private lenders are Allow for indulgence for up to 120 days. Contact your lender and be ready to provide evidence of economic distress.
8. Automatic payments
Many lenders work with people who have lost their jobs due to the coronavirus and are struggling to make car loan payments. Ally Bank offers automatic deferred payment for up to 120 days.
Some automakers also shake hands with borrowers. For example, Hyundai’s finance team allows current car owners to Postpone payments for up to three months.
Call your lender to explain your situation and discuss your options.
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