The Coronavirus (COVID-19) is seriously transforming our way of life and our workplaces. Many people face reduced income or job loss altogether and will find it difficult to keep up with their student loans, mortgage payments, credit card bills, and other debt.

Managing your federal student loans

Most federal student loan payments are suspended, and interest is exempt, until January 31, 2022, due to the COVID-19 national emergency. Collection actions, wage garnishments, and Treasury offsets, such as tax refund offsets and Social Security intercepts, for delinquent federal student loans are also paused during this time.

Mortgage Payment Help

As soon as you realize you’re going to have trouble making your next mortgage payment, call your loan servicer to find out what options you may have. You could be eligible for a forbearance, such as a COVID-19 forbearance if you have a federally backed mortgage loan, or another form of immediate, short-term mortgage relief, such as a waiver of late fees.

Foreclosure Stays

As established by US law, mortgage holidays are in effect for mortgage loans that are backed by the federal government. Many states and cities, as well as other government entities, have also enacted emergency moratoriums on foreclosures and eviction bans due to the coronavirus outbreak.

If you are behind in paying property taxes, some counties are declaring a moratorium on property tax foreclosures and sales. Call your county treasurer’s office or search the Internet to see if your area has a moratorium.

Credit cards, personal loans and companies

Many credit card issuers, including Capital One, Chase, Citi, US Bank, and Wells Fargo, among others, have posted statements on their websites announcing various types of help for consumers during the coronavirus outbreak. Available help includes credit line increases, forbearance, and missed payments.

Banks, credit unions, and other financial institutions are offering, among other things, loan extensions and deferred payment options if you’re having trouble making payments on a personal or small business loan. If they need money to make ends meet, different lenders and the United States Small Business Administration (SBA) are offering loans to those affected by the coronavirus.

Public services, telephone, Internet

Many government agencies, including California, Connecticut, District of Columbia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio Pennsylvania, South Carolina, Vermont, Virginia, West Virginia (where regulators have urged a halt to disconnections), and Wisconsin have ordered a moratorium on utility shutoffs. Some utility companies have also implemented a disconnection moratorium. To find a regularly updated list of states and businesses that have implemented disconnect suspensions, go to the Energy and Policy Institute website and also the Federal Communications Commission website.

Many phone and Internet providers are also waiving late fees and postponing disconnections. Some providers are giving free internet service to new customers or unlimited data to current customers for a limited time, like 60 days.

Categorized in: