How to Survive and Maintain Your Credit During the COVID-19 Pandemic
If you are under a tight budget and are having a hard time financially, know that you are not alone. The pandemic has surprised everyone and has gotten us all off guard. It has paralyzed jobs and incomes, and the struggle lies with having to still pay for bills in spite of little to no money coming on hand.
While it may seem very overwhelming, Chi Chi Wu, a staff attorney at National Consumer Law Center, has assured people that it is definitely okay to not prioritize credit score during these moments.
She has cited that indeed, good credit score paves the way to endless promising opportunities such as better rates and more job applications, but in the middle of the crisis, it should be the in the least of our worries. She has further emphasized that the health and well-being of our family and loved ones should be on the top of our list.
However, she has also reported to CNBC Select several to-dos for our credit score in the face of the pandemic.
Wu states that basic necessities should be the most prioritized. Meaning, if you have a home and car to pay, you have to actually pay for them first because not doing so will immobilize you.
NCLC has developed an online book entitled, “Surviving Debt’ to provide help and assistance to people. In this said resource, they have pinpointed three major kinds of debt:
- Lower priority debts
- Debts that may too quickly become high priorities
- High priority debts
Lower Priority Debts
These include credit card debt. In this, you have to make sure that you have already paid for the higher kinds before paying off for this. Because credit card debts have the highest APR, it is best to still communicate with the card issuer for a temporary plan. Wu has strongly advised not to pay these first just because you find it hard to pay for the higher priorities.
Debts that may too quickly become high priorities
These, on the other hand, include federal student loans and other personal loans that are not for a basic need. You may also contact your creditor and arrange payments.
High priority debts
These debts are rent payments, utility car loans, and other bills. They are to be highly prioritized for a reason. If you do not pay any of these immediately, then surely you will suffer right away. If you find it very difficult to cope up and to pay full, we highly advise it is highly to talk to authorities for negotiation.
Another trick is to have a balance transfer card. This will enable you to save on interest and pay it down much quicker. You can only best do this if you have an ample amount of money to pay off credit card debt. Most balance transfer cards require a good credit score, but there are some also that do not.
We know that this is nerve-wracking and exhausting at some point, but we are in this together. This coming May 14, 2020, Thursday, 7 PM, we would like to invite you to a virtual seminar entitled, “How to Survive and Maintain Your Credit During a Pandemic”.
It will tackle deeper about specific circumstances like what to do if you have lost your job, how to make sure your score does not drop, and how to supplement your income.
Your speaker, Jasmine Williams, is the Founder of the Philadelphia Real Estate Group. She has lots of knowledge to share, ones she’s also has learned as she was journeying down this path.
Come join us! Mark your calendars and schedule: Thursday, May 14, 2020, 7PM. Share this with your family and friends too so you can learn together!
Join the event Click here