How To Deal With Credit Woes During Tough Times

how-to-deal-with-credit-woes-during-tough-times

If you’re out of work, you can’t pay your bills. What should you do? Don’t despair, because there are plenty of options.

Let’s look at your biggest expense first: Housing. Many landlords are giving tenants some leeway. Everyone is in this boat, so you might get a break.

With mortgages, it will be a little more difficult. That doesn’t mean you can’t ask for late fees to be waived. They may ask for some documentation.

What about your credit cards? With more than 6 million filing for unemployment, credit card issuers are more than aware of the problem. That doesn’t mean they will be cutting you some slack on fees, though.

According to a survey by CreditCards.com, some 110 million Americans carried card debt into this current crisis. Ted Rossman, an industry analyst with the company, offers these suggestions:

  • File for unemployment and other benefits, if applicable
  • Contact credit card issuers and other lenders if you’re having trouble making payments
  • Get a 0% balance transfer card if you have credit card debt and can get approved
  • Conserve cash, especially if it’s limited – cut nonessential spending, track down tax and event ticket refunds and redeem credit card rewards
  • 0% introductory APR cards are another idea, if you can get one

The good news: If you’re not going out, you can cut down expenses by eliminating discretionary spending like restaurants, bars and entertainment.

Also look at in-home expenses that can be cut like cable, cleaning and deliveries. You’d be surprised at how much you can save.

THOMAS SAMSON/AFP via Getty Images)

AFP via Getty Images

Follow me on Twitter or LinkedInCheck out my website or some of my other work here

Leave a Reply

Your email address will not be published. Required fields are marked *

powell’s-dovish-comments-let-markets-fly

Powell’s Dovish Comments Let Markets Fly

income-based-repayment:-advocates-call-on-biden-to-enact-sweeping-reforms-for-student-loan-borrowers

Income Based Repayment: Advocates Call On Biden To Enact Sweeping Reforms For Student Loan Borrowers