COVID-19 made your finances sick. We can help you get them on the mend.
Why 2020 Was a Spooky Year for Debt
Most consumers started this year with a positive financial outlook. But after the pandemic started, the markets dropped and unemployment suffered. This resulted in a lot of debt – but you don’t have to be worried. Consolidated Credit isn’t scared of your debt. You don’t have to be, either.
2020 turned into a scary year for debt…
Even though it started out well.
As of January 2020, 74% of Americans said they will be better off financially in a year.
In the second quarter of 2020, total household debt decreased for the first time since 2014.
But then, COVID-19 scared the market…
And the unemployment rate skyrocketed to 14.7%, the highest since the
Great Depression.
In 2019, only 15% of workers worried about getting laid off. In 2020, 27% do.
If you aren’t feeling good about your money, you’re not alone. But don’t worry. Here’s the best news:
Consolidated Credit isn’t scared of your debt. You don’t have to be, either.
A recent report from TransUnion revealed that 52 percent of Americans have been financially affected by the COVID-19 pandemic. It’s been incredibly frightening watching markets drop, unemployment rates go up, and families struggle with their money. If you’re falling behind on payments, you aren’t the only one.
The CARES Act bought you some time, but this year is flying by. TransUnion reported that impacted consumers will not be able to pay their loans or bills in approximately 6.1 weeks. Those 6 weeks will go fast, so we want to help get your money problems cured as soon as possible. In this article, we’ll review three common money scares and their cures.
Scare: Losing your job.
Cure: Talk to your creditors and tap into emergency savings.
The pandemic’s economic impact caused a sharp increase in unemployment. Many also had their hours reduced, cutting their income below what they budgeted for. Either way, a lower household income can be a scary thing.
Creditors have fortunately been understanding of many customers’ situations. If you’re having trouble paying your bills, call up the lender or creditor and explain how the pandemic affected your ability to pay. They may be able to make your payments more manageable.
An emergency savings account can also help. If you have one, now is the time to use it. Budget it like it’s your income so you don’t spend it all at once.
If you still have a job, you’re lucky — millions of people lost their jobs because of the economic consequences of COVID. Use your income to start building a bigger emergency savings account just in case something happens.
What if I don’t have an emergency savings account?
Though it may be tempting, we strongly recommend against payday loans or other short-term, high-interest borrowing. Instead, you could:
- Ask family or friends for help.
- Use a low-interest credit card.
- Get a quote for a personal loan (if you have a good credit score).
Read what financial experts have to say about handling debt after loss of income »
Scare: Not being able to pay your rent or mortgage.
Cure: Talking to a HUD-certified housing counselor.
Because of lower incomes and tighter budgets, many are also having trouble paying for shelter. The foreclosure and eviction ban from the CARES Act has been extended until December 31, so you can’t be kicked out yet. However, once January comes, you will be very behind if you haven’t kept up with your payments.
If you have enough money, keep paying as much of your rent or mortgage as you can. If you’re having a lot of trouble, call one of our HUD-certified housing counselors to discuss your options.
Get connected with a HUD-certified housing counselor today.
Scare: Piling on more credit card debt.
Cure: Calling Consolidated Credit.
You’re not alone if the debt you’re taking on right now is frightening. Millions of people are struggling financially because of the pandemic, and there’s no reason to be ashamed.
A certified counselor at Consolidated Credit can help you remedy your debt problems. When you call, they will give you a free debt and budget evaluation and assist you in picking the best debt relief solution for your situation.
It may be a scary year for your finances, but Consolidated Credit isn’t afraid of debt.
Call now to get a free debt and budget evaluation from a certified credit counselor.
