Despite most states reopening, the world is still grappling from the effects of a deadly pandemic. Thousands of new cases are still being reported every day. Many businesses have reopened, but some with reduced their staff and a few will never reopen at all.
As a result, millions of Americans have lost their primary source of income. Many will not be able to pay off their debts.
It is stressful to worry about your health and money at the same time. If you are lucky enough to still have a job, it is better to start taking care of what you owe.
Typically, when a debt goes unpaid, the lender will sell the account to a debt collection agency. The debt collection agency will try to collect the money owed plus interest by any means. If none of their efforts works, the account will be sold to another debt collection agency that will impose more fees on top of the debt you already owe.
Pay off your debts as early as possible. Call and ask which merchant services for debt collectionare available. See if you can mail a check if you cannot go out of the house or use your credit card if you cannot pay the amount upfront.
Doing so will help you from a lot of headaches later on. Unfortunately, saying that you do not have a job right now may not stop debt collection agencies from phoning you to demand payment.
Credit Card Debt
Shopping might feel therapeutic during this pandemic, but it will be tough to pay off once it starts to pile up. Your credit card debt should be a priority during this pandemic because, usually, it has high-interest rates.
If you pay off your debt now or, at least, try to reduce the amount you owe, you will be able to use your credit card to buy essentials in case you do get laid off from your work in the future.
Call your bank and see what assistance they can offer you. Bank of America, Apple Card, and others have said that they will defer payments for everyone affected by the pandemic.
If you do not have a debt, that is great news but do not let your bills pile up. Pay off your credit card bills on time, so you never have to worry about debt ever.
Housing-related bills need to be addressed promptly. During normal circumstances, non-payment will result in eviction and foreclosure. You would not want that to happen to you during a crisis such as a pandemic.
Some states have placed eviction freezes of varying degrees to protect renters and homeowners. However, if you can, do not postpone paying off your rent or mortgage. These bills will pile up, and you might have to pay off the total amount at once as soon as the pandemic is over.
Contact your mortgage issuer to see if you can work out a deal or look into mortgage refinancing.
Many people will struggle in the coming months. The United States is officially in a recession that experts say is more severe than the Great Recession in 2007. It would be beneficial to start making changes in your life to prepare you for what is to come.