Debt Relief During this Coronavirus Outbreak

Coronavirus outbreak affects a lot of aspects of our life. Speaking from the White House Rose Garden, Donald Trump declared a national emergency on March 13 because of this coronavirus outbreak. Since then, we have started our journey on a war footing against coronavirus. We will let the medical science try to handle the vaccine, treatment, or other medicines for the virus itself. For us, we only need to learn more about any fact or fiction about help in your financial condition. There might be some debt relief help from banks, politicians, credit card companies, etc.

Reduce small business debt

The President and the Congress are still talking about some unprecedented steps that can be taken to keep the economy stable. Here are a few things that you need to know from this emergency.

  • Most likely, you are going to receive a check from the government at the end of April. This additional emergency fund can be used for any of your emergency needs for the next few weeks. Always beware of any scammers during this emergency. No one from the government or others can ask for personal information, such as current address and social security number. If anyone asks you about these personal details, they must be scammers who want to use your personal information for any unknown reasons.
  • The interest of student debt will be suspended. However, you still need to make payments for your debt. More information about this will come in the next couple of weeks.
  • If you rent a federally subsidized house or you have a government-backed mortgage, you will not face foreclosure and eviction in this emergency. You can also get a little help, even though you are in the traditional housing situation. Some sheriffs around the country refuse to serve eviction notices from the banks or lenders.
  • You get an additional three months for filing and paying your tax with no interest and penalty. The tax filing day is July 15 now.
  • According to the water and electricity providers, you can get a little help from them. If you have some difficulties in making utility payments, the flow of electricity and water will be unlikely to stop during this emergency.
  • If you have some problems with your credit card payment every month, you can contact the credit card issuers to talk about the best solution for you.

However, you have to be careful because not everyone can get a piece of financial candy this year. You may not receive this benefit when you are unable to demonstrate the financial harm from this COVID-19 outbreak, or your company is too large for getting the financial bailout, or you made too much money last year for getting free money this year.

When will I receive the Government’s check? Answer SiLoans expert.

According to the Treasury Secretary, the White House is planning to have a $1 trillion stimulus package during this emergency. The plan is to give $1000 checks to all Americans who have a certain income level ($75,000 for single and $150,000 for couples per year). There is still a discussion among the members of Congress, to determine the right amount of the check that will be delivered to all Americans. The President wants to get the cash ready by now because all Americans need cash now. The check is predicted to be delivered around the end of April.

Do I Need to Pay Credit Card?

Coronavirus affects the whole economy system abruptly. There are some conditions that you need to know in this situation, including, job layoffs have already increased very rapidly, the application of unemployment soars. all investments are in free-fall condition, and also service-economy workers are getting hammered.

During this situation, some credit card companies are trying to create some payment-relief programs for this situation. Apple and Barclays have already contacted their customers to skip their March payment without penalty, late fee, or interest. However, not all creditors can take the same action as Apple and Barclays. Many banks and also credit card companies have certain COVID-19 relief programs, but you still need to contact them for getting this advantage. Contact your credit card company, so you can explain your situation.

What if I Cannot Pay the Mortgage?

The President has already ordered the Department of Housing and Urban Development for suspending the evictions and foreclosures this April because all Americans get the coronavirus financial tsunami. All people with FHA-backed mortgages will get some additional breathing room during this situation. The Federal Housing Financial Agency also suspends the evictions and foreclosures for all homeowners with Freddie Mac and Fannie Mae backed mortgages.

If you have a loan from other lenders, you can still take advantage of this situation by contacting your lenders. Many lenders have COVID-19 relief programs for their customers. Different companies may have their programs and procedures. You have to call them for asking about the solution to this pandemic.

What do I Need to Do About My Student Loan?

Are you going to get a break on your student loan? The answer is no. The White House decided to waive the interest charge on any federally held student loans. However, you still need to make monthly payments for paying your student loan. Every dime you pay will go to the principal because there is no interest on your student loan during this emergency. If you can continue making full regular payments, your balance is going to shrink fast. It can be the best opportunity for you to pay off your student loan very quickly.

However, you have to be careful because different lenders may have their policies. You should contact your loan providers, to let them know about your condition. Although you cannot stop your monthly payment, you can still waive the interest. Waived interest may be a good thing for you who have student loans. It can be a huge saving for you, so you can pay off all of your student debts quickly in this outbreak. 

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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