Staying inside may help you survive a global pandemic, but not everyone will be financially immune to its consequences. Non-essential businesses have been forced to shut their doors, halting income for their owners and employees. Individuals have lost their jobs due to layoffs, and many are unsure of how they’ll be able to pay their bills or take care of their families.
Looking into government programs is always an option, but what if they take too much time to go into effect? Here are several steps you can take to endure the tough times brought on by COVID-19.
Speak to Your Creditors
As soon as you are aware of an approaching financial problem, reach out to your creditors. From credit cards to loans and mortgages, debt management requires a proactive approach, and it is critical to reach out to lenders before you miss a payment.
Some banks and other creditors have responded to the effects of the coronavirus by putting programs in place to help their customers. If you are unable to pay your bills, transparency and communication can help you stay on good terms with your lenders and, therefore, avoid lawsuits.
Additionally, we highly recommend written communication. This provides more substantial evidence than phone calls, and you can use it to hold creditors accountable for promises they make to you.
Analyze and Adjust Your Budget
One of the central challenges of budgeting is determining which expenses are necessities. During an economic crisis, however, this decision-making process is pivotal. The smallest reductions can make the difference in whether or not you can pay your bills and avoid severe financial issues. Are there programs or expenses that could be put on hold until you are back to where you want or need to be financially?
Utilize Your Emergency Fund
If you have an emergency fund, do not be afraid to use it. This is exactly its purpose. Many people choose to use credit cards instead of savings, but you can always rebuild your savings once you have a steady paycheck and are back to your normal routine. Credit cards, however, can quickly accrue massive amounts of interest.
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help individuals, families, and businesses endure the financial impact of the pandemic. The act provides several relief programs, including stimulus checks, small business loans, tax credits, and temporary adjustments to bankruptcy. Determining whether you are eligible for these programs can be a serious undertaking without qualified assistance, and we are here to interpret them for you and help you take full advantage of the act.
Get Started with The Buchalter Law Group
If you are having trouble exploring all your financial options, our team at The Buchalter Law Group is more than happy to assess your situation and provide skilled guidance. We are all experiencing an unprecedented global crisis, and our attorneys have the resources and experience needed to help you financially survive COVID-19.