COVID-19 is wreaking havoc in all corners of the economy and many people are being impacted. We want to provide you some information o help get through these times: 

  • Tax filing deadline and due date for payments have been moved to July 15, 2020. 

  • If you’re getting a refund file ASAP to have access to the cash.

  • If you know you’ll owe it may be prudent to file now and be aware of the figure. Possibly even make the payment to be able to forget about it.

Monthly Payments – We’re all in this together and it’s quite possible that making certain payments may become and issue. Here are some hacks:

  • Mortgage: Most lenders will allow you to stop making payments. YOU READ THAT CORRECTLY.

  • The federal government has instructed all lenders whose mortgages are backed by Sallie Mae or Freddie Mac to allow people to skip up to 12 mortgage payments. The missed payments would be added to end of the mortgage. So if you skip 12 payments your mortgage essentially becomes a 31 year mortgage.

  • Lenders not under federal direction have also begun implementing programs that will allow borrowers to stop making payments. 

  • If you can’t make the payment contact your lender and let them know. DO NOT JUST SKIP THE PAYMENT. 

  • Those approved for payment deferrals will NOT have negative marks reported to the credit bureaus as long as you work with the lender.

  • Utilities – to mortgage lenders, they will allow you to defer payments without having your service interrupted. Contact them if you’re having trouble making the payment.

  • Credit Card Debt – If you have debt try to move it to a 0% interest credit card to focus on making minimum payments without incurring interest (other than transfer fees at set-up).

  • Credit Card Payments - If you can’t make your monthly payment contact the bank. They’ll likely allow you to skip a payment or two.

Budget – This is a great time to look at your budget and see where your money is going. Sit down and do the following:

  • Pour over 3 months of expenses (bank statements, credit cards, etc.)

  • Categorize all expenses (Groceries, entertainment, housing & utilities, eating out, non-grocery shopping, household essentials, etc.)

  • I’ll bet you’ll find some surprises and now you can decide whether cuts should be made!

Subscriptions – Make a list of all your subscriptions and evaluate whether they all make sense. 
Examples:

  • Netflix

  • Hulu

  • Cable

  • Spotify

  • Pandora

  • Gym (two or more)

  • Amazon Prime

These are but a few examples but you get the idea: be vigilant about where your money is going to ensure you can focus on what matters most: family!

 

Please stay safe, take extra good care, and wash your hands well and frequently. 

 

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