It has been an extraordinary few weeks for our world, and as your friend who serves a global audience, it helps me to focus on the fact that we are all in this together.
The world desperately needs all of us uniting globally and, more importantly, helping to protect those who are most vulnerable. As the COVID-19 pandemic creates unprecedented challenges, we must remain vigilant by following the directions of our state and local authorities.
In these uncertain times, it’s more important now than ever to save for food, housing, fuel, water, medication, and other essentials by making the most out of every penny. Here are eight things you can do today to help you free up your money, so you have access to immediate cash:
Negotiate your bills. Contact your internet, cell phone, utilities, and other service providers and let them know if you’ve been directly affected by a job loss or pay cut. Also, ask if they have a hardship program or can offer you a lower rate. The best way to get a lower rate is to research online the lowest going rates in your area, either by the price your provider is offering to new subscribers or rates offered by the competition, and use that rate as your starting point.
When you call your service provider, ask to speak with the retention department, as this department usually has the authority to give you the best rate. Also, to get the best rate, it’s to your advantage to call versus going online, so be prepared to wait on hold for a while.
If possible, save unexpected income. Such as from your tax refund or Federal Stimulus payment, which you should receive in a few weeks if your adjusted gross income for 2019 (or 2018 if you haven't filed your taxes) is under $99,000 as an individual or $198,000 if you’re married.
Make minimum payments on your outstanding debt. If you’ve been paying down your debt, it may be time to pause and only pay the minimum so you can free up cash if you’re anticipating a layoff or have been laid off or furloughed. However, do not stop making payments as this could decrease your credit score.
Contact your credit card issuer. Ask for a lower rate of interest on your card or ask them to help if you’re having trouble paying your credit card bill. Your issuer may have a hardship program that provides temporary relief from late payments.
See if you qualify for an Automaker Payment Deferral program. Several automakers are currently offering payment deferrals for customers experiencing financial hardships. Go to your automaker’s website or contact your automaker’s customer financial services department to learn how they are assisting customers affected by COVID-19. Many automakers are also offering special interest rates, so this may be an excellent time to refinance your auto loan at a lower rate and for a shorter term.
Check to see if your student loans are Direct Federal and not Federal Family Education or private loans. If they are Direct Federal student loans, you’ll receive a six-month break from having to pay your loans until October 2020 under the CARES Act. Also, any interest that accrues during that time will be waived. This six-month break is automatic, so you do not have to contact your loan servicer.
If you have private student loans, you may want to contact the servicer because many of the private loan companies are making exceptions for people who have been financially impacted by the pandemic.
Negotiate your rent. If you’re a reliable tenant and you plan to continue living where you’re currently renting, you may be able to request a longer-term lease in exchange for a lower monthly rental payment, which will be beneficial for you and your landlord.
Also, a temporary moratorium by the federal government and many states have been implemented to prevent renters from being evicted for several months due to the COVID-19 crisis. It’s best to contact your landlord if you’re unable to pay your rent, but don’t expect to miss paying your rent altogether.
Find out if you have an FHA loan. Refer to your closing documents on your mortgage to see if your loan is with Freddie Mac or Fannie Mae. If so, the US Federal Government has placed a moratorium on evictions and foreclosures for up to 120-days and will allow forbearance options to borrowers affected by the pandemic.
Also, Federal regulators have directed mortgage servicers to offer reduced mortgage payments or deferrals to homeowners impacted by the crisis. It’s vital to contact your mortgage servicer immediately if you’ve been affected. And it’s important to document all correspondence.
Every penny counts, so make it your job and goal to get the most out of it. We are all concerned, but we are not alone, and we will get through this.
In the meantime, stay healthy, stay hopeful, and always remain faithful.
God Bless,
Livia
aka Livia Kelly (Author)
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Livia Kelly is the Author of Unmarried and Debt-Free. Livia's book has made Amazon's #1 Best Seller list in Personal Budgeting and Two-Hour Self-Help Short Reads. Her goal is to simplify finance by providing sound and useful guidance about budgeting, saving, tackling debt, and achieving financial success on your own. More information can be found at https://www.liviakellyauthor.com. Follow Livia on Facebook and Instagram @liviakellyauthor.