Coronavirus precautions have caused many businesses across the globe to close. This has caused industries to shut down, and has left millions of Americans unable to work. Since most are unable to work, many people are in a state of financial limbo.
While it does seem that the end is in sight, we are likely to experience more distruptions. It could be a few more weeks or maybe several months. Who knows. So it is important to take precautions wherever possible. It also pays to find answers to your financial queries now, to protect against future issues.
Here are some answers to keep in mind for finances during the coronavirus outbreak.
Receiving Your Stimulus Check
There have been a number of questions surrounding the universal stimulus check. This payment is allocated to each individual based on the tax you pay each year. It is yours to keep, free and untaxed, and it won’t affect your regular tax refund in any way. The payment will be roughly $1200 per adult, and $500 per child under the age of 16, income dependent.
If you haven’t filled out your 2018 tax return, do so now. Not doing so may cause delays in receiving your stimulus check.
If you are not usually required to fill out a tax return, you should still be eligible for support. The IRS has clarified that recipients of Supplemental Security Income will automatically receive their stimulus check. More detailed information on: will senior citizens get a stimulus check 2020 – is available here. Senior citizens should be eligible in most cases.
Many people across the country have concerns about rent and mortgage payments over the following months. If you think you may struggle to reach payments, get in touch with a housing or credit councillor for advice.
They can discuss your options with you and help negotiate with your lenders. The U.S. Department of Housing and Urban Development (HUD)-approved housing counselors can provide advice if you’re having trouble paying your mortgage loan or reverse mortgage loan.
Credit Counselors. Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors.
Contact your mortgage servicer for advice on mortgage payments if you are unable to make payments.
Paying Bills and Keeping Up With Other Financial Obligations
For those struggling with bills or other financial obligations due to coronavirus, don’t worry. Lenders and businesses are aware that these times are difficult. So it stands to reason to reach out and contact them about your financial situation. Check their websites for relevant information and get in touch by phone or email at the first opportunity.
They may be able to offer you some options which will protect your credit score in future. This might be a suspension of payments, waiving certain fees, or allowing you to delay or rearrange payments. Make sure you prepare for these discussions by having your financial information to hand too. Also, put together a plan for how much you can afford right now. Use that to negotiate a payment arrangement.
There is no guarantee they will always be able to help, but it is important to inform them nonetheless. Avoiding the problem will not make it go away. Take action. Even if it is just to ask for some breathing space.
Student loans are massive and they are also operated by the government. During the time of coronavirus, people understand the challenges faced. As such, there are even more options for people. For one, payments controlled by the federal government are automatically delayed until the end of September 2020.
For federal student loans held by a commercial lender (private entities, banks, etc.) contact your student loan servicer for guidance.