Tips to Deal with Financial Stress Caused by the Coronavirus Pandemic

Share On Facebook
share on Linkedin

The impact of the coronavirus pandemic has turned out to be much more far-reaching than many of us had anticipated. The fear and reality of death and disease have resulted in severe stress and anxiety for millions of Americans. It is now clear that this global health emergency is likely to have long-lasting financial implications.

©

According to available information, more than 22 million Americans have already filed for unemployment. A recent survey reveals that 67 million Americans feel that they will not be able to pay their credit card bills because of the pandemic.  In order to reduce this financial stress, a $2 trillion stimulus package has been passed by the US government.  However, this package alone is not likely to solve the problem.

National Debt Relief shares the following options to reduce financial stress in this tough time.

Emergency Fund Creation: Even under normal circumstances, keeping a budget helps gain control over financial matters. It is even more important under the current circumstances. The emergency budget must be a leaner version of the normal budget and reflect the minimum amount of money we need for survival. This budget only takes care of your essential spending and eliminates the extras such as entertainment, takeout, subscription services, etc.

Contact Landlord or Mortgage Company: One of the most difficult financial obligations to keep up with during an emergency is probably the rent check or mortgage. Though some banks and states have put together certain measures, but that has not helped everyone. Therefore, call your landlord or lender and find out your options. Be direct about how your finances have been affected by the COVID-19 and find out the following details.

  • Currently available payment options or plans
  • If a deferred payment facility is available
  • Ask your renters whether there is an option for paying whatever amount you can afford.

 

Additionally, don’t forget to check with the tenant agency of your state to find out if rent payment freezes, eviction waivers, or hardship protections have been increased or expanded.

Contact Credit Card Companies: Credit card debt is an eternal struggle for many Americans, and more so amidst the present financial crisis. However, you still have some options such as calling your credit card company and negotiating for temporarily deferred payments, lower rate, etc. Some of the largest credit card companies have already responded to the crisis by offering certain benefits for their customers.

  • American Express has waived late payment fees and interest for eligible business and personal cards.
  • Bank of America is accepting payment deferral requests
  • Chase is helping by extending payment due dates and waiving fees.
  • Citi is allowing its customers to extend their line of credit or pause their minimum payments temporarily.

 

Balance Transfer Card: Consider signing up for a balance transfer card that offers zero interest on the transferred balance for 6-18 months. This could be a huge help under the current circumstances, provided you are very smart with credit cards.

Local Relief Programs: Some local and state governments have relief plans that can be extremely useful for the community. As an example, California has an extensive plan that offers deferred mortgage payments for up to three months. Similar programs are available in many other states and communities that can assist with utility payments.

Community Assistance Programs: One of the most beautiful things about America is how people come together in support of their community during any crisis period. Many of us have seen churches, restaurants, hospitals, and different community welfare groups taking a firm stand in assisting high-need families.  If required, don’t hesitate to contact your local community centers, places of worship, and food banks to find out if they can help you.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200810 00:29:15