COVID-19: How it Affects Your Financial Future
The COVID–19 virus is affecting us worldwide. With business closures, unemployment, the stock market plummeting, and so much more, it is no surprise that our economy is in trouble. How can we be sure what our financial future is? Or how this virus will affect it.
During this pandemic, most of us, who are not working due to closures, are struggling with standard monthly bills, among other expenses. The people most affected are those that have suffered a loss of income, and do not have an emergency fund to help when times are tough. While unemployment, small business loans, and the stimulus check can assist during these trying times, it does not eliminate the financial struggle that most are facing.
Paying, or Not Paying Standard Monthly Expenses During Pandemic
Not being able to pay bills can start a spiraling effect on our finances. It’s true that most providers are allowing more time to pay monthly services, but what will happen when we finally get back to normal? How much will you be required to pay at once? Will you be able to set up payment arrangements that you can afford?
While many providers are giving 60 to 90 days to make a payment, those charges will not be erased, they still need to be paid at some point. So, what happens when all of your expenses are two to three months behind and all require larger than normal monthly payments? Will you need to get a loan to become current on your expenses? If so, Tennessee Title Loans, Inc. can provide title loans TN, also known as flex loans TN to get back on track. With just a few simple requirements, you can cash in on the value of your vehicle to receive emergency title loan cash the same day you need it.
COVID-19 Mortgage and Rent Relief Options in Tennessee
If you are unable to pay your mortgage or can only pay a portion at this time, contact your loan officer to discuss your options. Take the time to protect yourself by enrolling in the Coronavirus Aid, Relief, and Economic Security Act (CARES) that has recently been passed.
If you hold a mortgage with a banking institution, you may be approved for forbearance or able to put payments on the back end so that when our nation gets back to normal you will not have any missed payments to catch up on. This can help when you are trying to get back on your feet financially.
Renters will need to handle non-payment a little differently. The CARES Act was also created to protect you if you are renting from an owner that has a federally backed mortgage. Be sure to review the details of the CARES Act, as well as contacting your landlord.
Federal Government Student Loan Payments
If your student loan is held by the federal government, do not stress. All payments have been deferred with no interest until September 30, 2020. This is great! It a pause in payments with no penalty.
If your student loan is not held by the federal government and has been secured through a credit union, private lender, commercial lender, or other, be sure to contact the student loan officer directly for payment options. With any luck, you will be able to defer payments without interest.
Credit Card Payments
Some credit card providers are offering relief options during the coronavirus, but not all of them. Contact each provider for more details. If you cannot pay your monthly charges and they do not have a relief program set in place for those affected by this pandemic, you may want to contact a credit counselor before it is too late. It is important to take the time to consider all your options.
Auto Loan Commitments in TN
Many auto loan lenders are either extending payment schedules because of the coronavirus. It is up to you to reach out to find out what that means to you during this pandemic and after. While these programs are beneficial and provide us with a sense of relief during uncertain times, they can be quite costly when we return to life as usual, especially if you have more than one payment to catch up on.
While we know we will eventually return back to normal, it may not be the norm that we were used to. Many small businesses and even corporations will close, jobs will be lost, people will lose their homes, school funding and so much more will be cut. The world will be different. We will be different. Our ability to pay bills may still be difficult.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.