The economic impact of the coronavirus pandemic in the United States is unprecedented. Thousands of businesses are shuttered, some permanently, and the unemployment rate is currently estimated at beyond 15%. With the economy in shambles and so many people out of work, it’s no surprise that millions of Americans are having trouble making their monthly credit card and other debt payments. If you’re one of the people worrying about how you’re going to make that next payment on your mortgage, car loan, or credit card, here’s some key information on coronavirus debt relief that may be available to you.
The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for some homeowners who are concerned about being able to keep up with monthly mortgage payments. Thanks to the new law, lenders currently cannot begin foreclosure proceedings on any federally backed mortgage for 60 days after March 18, 2020. Additionally, homeowners with federally backed mortgages can request to suspend their mortgage payments for up to one year with no penalties.
Homeowners who don’t have a federally backed mortgage may still be eligible for coronavirus debt relief from either their state or the lender. For example, Bank of America is currently offering its mortgage customers the option to delay payments with no charges or penalties. So, if you don’t think you’ll be able to make your next mortgage payment, reach out to your lender to discuss your options.
Student Loans during the Coronavirus
The CARES Act also provided coronavirus debt relief for the millions of Americans struggling with high levels of student loan debt. Borrowers who currently have Department of Education-backed federal student loans aren’t required to make any loan payments until September 30, 2020. Additionally, there’s zero interest on these loans from March 13, 2020, until September 30, 2020. Any payments made toward these loans will be applied completely to the principal. Finally, many states are currently offering assistance and even forgiveness to student loans, so check to see if your state has any type of student loan relief for which you might be eligible.
Credit Card Debt Relief
Recognizing the challenging economic circumstances Americans are facing, many lenders are offering unprecedented support to their credit card customers. For example, Citi is offering some borrowers the option to increase their credit limits during this crisis, as well as allowing credit card account holders an option to defer their monthly payments. Bank of America is offering similar services. Additionally, credit card borrowers have many options when it comes to traditional balance transfers, which can help make credit card debt repayment more manageable. Overall, if you’re concerned about making your monthly credit card payments due to coronavirus, contact your lender right away to see what options are available.
Loans and Coronavirus
Many lenders are offering similar types of coronavirus debt relief to loan customers as well. If you check in with your lender, you may be eligible for deferred payments or some other type of support. Banks are continuing to issue debt consolidation loans, too, so if you’re still employed and interested in consolidating all your outstanding debts into a single loan, find out if debt consolidation is a good option for you.
The government is also providing low interest and, in some cases, forgivable loans to businesses to help them weather the pandemic. For example, many businesses are eligible for loans under the Paycheck Protection Program, or PPP, that may be forgiven if used properly. Additionally, businesses may be able to apply for low-interest disaster assistance loans if they’ve been affected by COVID-19.
Debt Settlement Services Still Available
If you feel that your debts are too high and no federal, state, or private sector relief is available, consider using a debt settlement service. Debt settlement companies work on your behalf to negotiate debt repayment terms with your creditors. In some cases, these companies can secure agreements that reduce your debt balances with creditors considerably, helping you to become debt-free. The team at National Debt Relief is available and providing services to current and future customers. Contact us if you think debt settlement may be a good choice for your current situation.
Don’t Let Debt Overwhelm You during the Coronavirus Crisis
Between the coronavirus public health threat and the economic fallout from stay-at-home orders across the nation, we all have a great deal to worry about; personal debt doesn’t have to be another overwhelming issue. So, take the advice and tips about coronavirus debt relief offered here into consideration, and take actions to address your debts today.