SAN ANTONIO – Manuela Martinez is among the millions of Americans now having to decide which bills get paid and which will have to wait. She was recently laid off from her job.
“What went through my mind when I got laid off was like, ‘How am I supposed to pay my electricity bill? How am I supposed to pay my rent?,’ while also thinking about how I’m going to set food on the table,” she said.
The stimulus check that 90% of Americans are receiving will not be enough for many people to get through the economic crisis.
Money experts said setting priorities is key in times like these. People may not be able to pay the monthly bills as in normal times.
“You may have to focus instead on essentials such as rent, utilities, and pharmacy bills,” said Consumer Reports Money Editor Scott Medintz.
When it comes to credit cards, many banks are deferring payments and waiving fees for people suffering a pandemic-caused hardship.
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“If you get a hardship accommodation, make sure that your payments are reported as current on your credit report rather than delinquent so it won’t impact your FICO score,” Medintz said.
Martinez caller her credit card companies to ask for help and was pleased that they accommodated her and allowed her more time.
“They actually took ownership to say, ‘Listen, you don’t have to pay anything for the next three months or two months,'” she said.
As for federally-backed mortgages, the CARES Act may offer relief from payments. However, you can’t just ignore your mortgage bill.
“The law doesn’t kick in automatically,” Medintz said. “You have to contact your servicer. And, it doesn’t say how you’ll be asked to pay up afterward. Your servicer should contact you about a month before time is up to offer you a realistic payment plan.”
Whether it’s your mortgage, rent, electricity or any other bill, money advisers say it’s crucial to be proactive and reach out to the creditor early to communicate and find out your options.
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