Dealing with the Financial Hardships of COVID-19

Dealing with the Financial Hardships of COVID-19

Written by Nathan Woolard

It’s impossible to downplay the fact that we are living through an unusual and frightening time.  As businesses have closed to protect against the spread of COVID-19, countless employees have been let go and left to deal with ever-mounting financial woes without income to compensate for it.  However, if you or your family are struggling to make ends meet, there are resources available to help keep you on your feet.  Here are three steps to get you started: 

• Talk to your creditors.  Many creditors are currently offering special programs for people suffering from economic hardships:
  • Banks and credit card issuers may provide assistance on a case-by-case basis.  Call your lenders to ask about your situation, as you may be eligible for waived late fees, deferred payments, and more.
  • Many utility, telephone, cable, and Internet companies are offering assistance during the pandemic and some have assured that they won’t discontinue service even if customers can’t cover the bills.  Check with your service providers about waived late fees and other flexible payment plans.
  • Worried about your student loan?  If your loan is held by the federal government, your loan payments are suspended, interest-free, through September 30, 2020.  For information on other kinds of loans, such as those held by commercial lenders or institutions or private loans held by banks, credit unions, or schools, you should contact the loan servicer to see what options they may offer.
• Research local nonprofits.  For assistance with food and other essentials, look into local nonprofit organizations.  Many organizations are working to feed families in need, while others are ensuring access to shelter, childcare, and other such necessities.  Smaller groups are doing their part as well, and you may be surprised to realize just how much is available near you.  Churches are providing masks for their communities, schools are serving free lunches, and animal shelters are opening food pantries for pets.  Look into the nonprofits in your area and see what help you might be able to receive.
• Stay updated on the newest regulations.  Regulations fluctuate quickly as a result of the constantly changing nature of life under COVID-19.  It’s important to keep up with the latest news so that you are aware as new programs become available that could help you, such as expansion of unemployment benefits.

It’s true that this pandemic has had a drastic impact on our daily lives and continues to cause significant financial struggles for families around the world.  The stress of this strange and scary situation will only keep building, so don’t be afraid to seek out the resources at hand to alleviate that stress.  Staying on top of the opportunities you are afforded can help ease your financial burden and lift at least some of the tiresome weight off your shoulders.