Concern due to the Novel Coronavirus [COVID-19] Pandemic has the world over rightfully feeling anxious. Especially if you have never built up an emergency fund. Nevertheless, now is not the time to worry about the past. Conversely, now is the time to seek out emergency financing options that you can rely on in these desperate times.
American Financial Stress
The arrival of the Coronavirus has people panicked in a time when finances are already a stressor for most Americans. Before the pandemic, as much as 53% of the populace worried about personal finances. For 44%, simply discussing their financial life is enough to bother. These disturbing numbers paint a picture of the state of many American’s balance sheets. The current relief efforts will not suffice to keep displaced workers afloat. As we ready ourselves for the impact of COVID-19, there are a few things to keep in mind.
Monetary Concessions During Coronavirus
Traditional lenders like payday loans and bank loans are working harder than ever to finance all who are currently looking for a loan. Chances are, your auto lender, student loan lender, credit card issuer, etc. may offer temporary relief. But this is not enough. More so, when you consider the number of people now visiting financial institutions looking for quick relief from this time of financial hardship.
The 2018 National Financial Capability Study and the 2019 P-Fin Index reports that only 50% of Americans can fully cover expenses and bills monthly. Nearly 9 in 10 American’s have outstanding debt and nearly one-quarter of Americans have unpaid bills medical bills. Similarly, when asked if they would be able to come up with $2,000 in an emergency, nearly a third of Americans said they could not.
Protecting Your Credit Score
Do not hesitate to sign up for payment or forbearance programs. Having such programs on your credit report will not damage your credit score. Knowing what type of loans affect your credit score is essential in protecting your credit history. Now is the time to lean on emergency financial support.
You can always apply for a loan from a non-traditional lender like a car title loan lender. If your credit score is in fair condition, ask for lower interest rates and a loan term that suits your needs. If your credit score is in poor condition, work with your loan officer to negotiate an APR and repayment schedule you can comfortably manage.
Beware of Potential Scams
Note that the Federal Trade Commission and has warned citizens to watch out for businesses attempting to exploit the 2020 Coronavirus Pandemic. Don’t respond to emails or phone calls directly. If you are looking for Coronavirus news, visit the Centers for Disease Control and Prevention website.
Now that interest rates are decreasing, this is the right time to open an equity line of credit. Using your property as collateral can grant you access to large amounts of money in this time of need. Additionally, another way to take advantage of low-interest rates is to refinance your loans. This can lead to lower monthly payments. Protecting our finances in times of crisis allows us to feel financially in control. While we practice social distancing and stay indoors, there are resources we can tap into to manage our money wisely. Learn more at https://www.cdc.gov/