How to Manage Your Credit During the Coronavirus Outbreak
The COVID-19 pandemic has dealt a double-edged blow to the U.S. economy. More than 30 million workers filed for unemployment benefits during the first two months that the coronavirus gripped the country. Although no one could have predicted such a national economic crisis, there are some prudent measures you can take to manage your credit, even if you’ve been laid off or have seen your income reduced significantly.
During an economic downturn, replacing the income you’ve lost can be a challenge, but you can take specific actions to help overcome debt fears, such as:
- Be prompt and upfront — It can be difficult to talk about money troubles, even with the people closest to us. However, there’s no reason for shame, particularly at a time like this. Dealing with financial concerns immediately and honestly allows you to put an effective credit management plan in place.
- Take advantage of relief that’s available — Along with tax rebate payments from the government and enhanced unemployment benefits, several federal, state and local programs have been launched to assist people who are having difficulty meeting their obligations. You may be able to reduce or defer student loan payments, housing costs, property taxes or other significant financial obligations.
- Negotiate for more favorable terms — Millions of people are having trouble managing their budget, and companies are looking to secure revenue while avoiding the effort and expense needed to initiate collection efforts. Negotiating for revised terms that better suit your current circumstances might benefit both you and your creditors.
- Seek counsel on whether bankruptcy is appropriate — When other steps aren’t sufficient to relieve your financial burden, bankruptcy gives you the chance to halt creditor actions and make a fresh start. Whether the best option is a Chapter 7 debt discharge or a reasonable repayment plan under Chapter 13, a skillful attorney can outline the necessary steps and put you on the path toward rebuilding your credit.
By working with an experienced lawyer, you can gain an informed perspective on your debt and credit matters. Moreover, he or she can represent you in a negotiation, a bankruptcy filing or some other aspect of your overall financial strategy.
Contact an effective bankruptcy attorney to discuss your debt concerns
Blalock Law Office, P.A. provides knowledgeable counsel on bankruptcy and other methods of debt relief. To make an appointment with a qualified attorney, please call 336-609-6878 or contact the firm online.