Hi Tiff,
I work in a bar that was closed this week due to COVID-19. I’m scared that I am going to lose everything since I don’t have money coming in and my savings are already low. I’m limited in side hustle possibilities since I don’t have a car and can’t deliver food or drive people around. Where do I even start?
Sincerely,
Scared and Homebound
Hi Scared:
I am really sorry to hear
you are going through this. I’m sure it is so stressful and it doesn’t help
that you can’t watch TV or get on social media without hearing something about
COVID-19, aka coronavirus. I don’t think there is anyone that hasn’t been
affected by this. In fact, due to the impact this has had on so many people,
regulatory agencies have encouraged banks and lenders to work with customers
affected by COVID-19. Many state and local governments are also implementing
programs to help citizens and businesses that have been affected.
I’ve compiled a list of
suggestions and recommendations based in the United States that will hopefully
help with your situation. And just a heads-up—there is a lot of information
below! My intent isn’t to overwhelm you but to provide you with information and
ideas. There is a lot going on, and taking care of yourself and your family is
the most important thing right now. Make a goal for how you want to tackle this
and break it into manageable pieces.
If you live outside of the
United States, please check with your local government offices for help and
resources. The World Health Organization recently launched a Health Alert
messaging service through WhatsApp that can help keep you updated.
I don’t know all the
details of your situation, but it sounds like it would be worth looking into
unemployment insurance. You can find more information about unemployment and
links to your state’s unemployment insurance program in our expert guide to unemployment
benefits.
The federal government is currently allowing states to amend their requirements around unemployment benefits so that people affected by COVID-19 will be covered. Find out if you qualify and apply for benefits if you can.
Homeowners: Many mortgage lenders have already put things in place to help their customers, like delaying payments for 120 days or waiving late fees. The CFPB has provided detailed information on how to handle this type of situation. You’ll want to contact your service provider and explain your situation and see if they will work with you. You can also contact a HUD-approved housing counselor in your state to find additional resources.
If you have an FHA-insured mortgage, the Department of Housing and Urban Development recently directed mortgage servicers to cease foreclosure and eviction procedures through the end of April. That should give you some breathing room, but only if you have that type of mortgage loan.
Renters: In many cities, residential evictions
have been stopped for the time being. Not every city in the US has implemented
eviction moratoriums, so research what is being done in your area. If your city
or state has placed a ban on evictions, you should still contact your landlord
and tell them your situation.
If
there isn’t an eviction ban in your area, definitely contact your landlord. My
guess is that they will work with you. I don’t think many people, if any, are
moving right now. It’s in your landlord’s best interest to get a payment plan
worked out with current tenants.
Many banks, lenders and
other businesses are working with customers on payment plans. Lenders don’t
want customers to default since it’s an expensive process and can ruin a relationship
between the lender and customer. My suggestion is to call your creditors and
let them know of your situation as soon as possible. They may be able to change
your payment due date, allow you to skip a payment or waive late fees. It does
not hurt to ask.
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If you have student loans there is a good chance that you qualify for a deferred payment or reduced payment based on your situation. The Department of Education recently suspended federal loan payments and waived interest for at least 60 days. Private student loans don’t qualify, but you should contact your service provider to find out what your options are.
First, rest assured that there are no nationwide food shortages due to COVID 19. The Families First Coronavirus Response Act has expanded food assistance, including suspending the work requirements for the Supplemental Nutrition Assistance Program (SNAP) and allowing states to provide emergency SNAP benefits. While many grocery stores have altered their hours during this time, many are offering voucher programs and other resources to help their communities. Check with your local grocery store to see if it has implemented any emergency assistance programs at this time.
If you have a child, your area may be providing school lunches that you can pick up. Some restaurants, like Burger King, are also offering free lunches for children. Each area is different, so check your local resources.
I’ve listed several more
resources below, but if you need help in your specific area please email me and
I would be more than happy to help: tipswithtiff@credit.com. The list below doesn’t include all
lenders or resources. I’m hoping this will give you an idea of what your
options are and point you in the right direction.
Best of luck, and take
care!
Tiff
When requesting help from any of these services, be sure to mention coronavirus specifically if relevant to your situation.
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Disclaimer: Credit Tips with Tiff provides credit tips and suggestions for you to make the most of your money. Given the quantity of questions we receive daily, we are able to answer only select questions. Your email is not guaranteed a response. We reserve the right to edit and publish questions. If your question is chosen, your identity will remain anonymous. We are not financial experts. If you are in need of specific financial help, please seek the advice of a professional.