For some people, making ends meet was bad enough before the coronavirus uprooted the whole economy. As a result, a difficult situation may have become even worse. How can you better manage your debt payments without pulling all of your hair out? Here are some tips from Quality Credit Repair, Philadelphia’s best credit repair company.
Adjust Your Budget
First things first, you’ll need to change your spending habits to accommodate for tighter finances if the COVID-19 outbreak has impacted your working situation. In these difficult times, necessities come first, so make sure that you have any money for food, rent, utilities, and other bills that need to be paid on time regardless of your financial struggles. Luckily, you’ll be saving a lot of money from less dining out, entertainment, and travel.
Pay the Minimum Amount on Time
Yes, the bills will continue piling up and you have to do your best to not fall too far behind. Managing your finances at a time like this can be extremely stressful and difficult, but you’re on the right track if you pay at least the minimum amount required by your credit card company and other debt collectors. Try to make your payments on time so that your credit score doesn’t go down. You might want to use the autopay feature, a great tool for avoiding late fees, if you have enough money in the bank that you’re not worried about overdraft fees. Otherwise, turn autopay off and set reminders for yourself to make manual payments.
Use Your Stimulus Check Wisely
Thankfully, you may have some free cash coming in from the government. The $2 trillion coronavirus stimulus package that was signed into law on March 27 will provide eligible Americans with a $1,200 check distributed right into their bank accounts or delivered to their homes. Use this money wisely to either make the minimum payment on your outstanding debts or purchase necessities.
Ask Lenders for Help
Since almost 36 million Americans have filed for unemployment to date, a lot of lenders realize the critical situation our economy is facing and are stepping up to offer relief programs. If you absolutely cannot make any progress towards your loan payments, reach out to your lenders and ask for help. Some banks have payment programs set up, while others are allowing customers to skip a few monthly payments without accruing interest.
Remember, you’re not going through this alone. At Quality Credit Repair, we offer credit restoration services throughout Philadelphia, Bucks County, Montgomery County, and the surrounding regions. Contact us today to learn more.