If you are like most Americans, you may need to find access to more money now or predict you will need more money soon to pay for necessities. Below are some actions you can take to increase cash flow into your household in the immediate future.
Although we professionally manage books for business, the exact same principles apply for households. If you are in a cash flow crunch, you want to attempt to increase revenue and lower expenses.
It is very important that you take a proactive approach, you must contact your lenders / credit holders to understand what your potential payment options are. It is not automatic; you need to make the request.
- Mortgage and or Rent
- Auto and or Lease Payments
- Credit Cards
- Record Keeping
Mortgage or Rent Payment
- Mortgage: Contact the same institution where you mail your mortgage payment. Ask them
“How they can provide you relief of your monthly payment obligations due to you being negatively impacted by the COIVD-19 pandemic.”
Below are the options they may be able to provide:
- Deferral – delay of payment
- Forbearance – reduction of monthly payment
- Financial Hardship Programs – unique per bank
Note: Many financial institutions are providing deferrals – delaying payments with no negative impact to your credit report, not allowing foreclosure actions, and not charging interest for non-payments for the next 3-12 months.
Currently, they expect payments due in full after the agreed timeframe but are working on additional payment plans and considering adding payments to the end of the loan term.
Again, It is important to build relationships with your lender and keep in contact as the regulations and options are changing daily.
- Renters: Landlords may have less financial flexibility, but may be getting relief from their mortgage lenders mentioned above. It is important to communicate with your landlord, who is also negatively impacted by this crisis, and understand the relief they have gotten and how you can work together on a plan.
Landlords are not allowed to evict a tenant within a defined time frame defined by each state governor.
Auto Loans and Lease Payments:
Contact these institutions in the same fashion you are contacting mortgage lenders.
They are offering similar programs, but each institution will have a unique offer.
Credit Card Payments:
There is less relief for credit card payments because your balance is still accumulating over time with interest. However, many are allowing for deferment of your minimum payment, reduced monthly payments, and temporary relief for late payments without impacting your credit score.
At this point, you may want to apply for a new card that better fits your current needs, institutions offer cards that have zero (0%) interest rates on new purchases and balance transfers for the next 12-18 months.
A good resource for credit card options: https://www.nerdwallet.com/
The Federal Communications Commission has issued a “Keep Americans Connected” pledge asking telecommunications and broadband providers to promote connectivity for Americans impacted by disruptions caused by the coronavirus.
Providers signing the pledge agree for the next 60 days to not terminate service to, and waive late fees for, any residential or small business customers because they can’t pay their bills because of the pandemic’s disruptions. Providers also agree to open Wi-Fi hotspots to any American who needs them. The list has been growing, so far more the 650 companies and associations have signed this pledge. Below is a short list of providers including the following:
- Verizon Wireless
Contact your provider, to understand what type of relief options that they are providing.
Government bodies have offered disconnection suspension statewide.
Contact your provider, what relief can they offer you.
Lastly, as you communicate with your lenders and service providers. Keep great records, you will be given assistance, but you will have followed up obligations. It is important to stay on top of your responsibilities and keep records of who and when you spoke to each provider.
- Type of Loan/Service:
- Phone Number:
- Contact Person:
- Next Step:
- Date of Initial Contact:
- Date of Relief Given:
- Follow up Date:
- Retain Bills/Payments for records
As always, Trust Bookkeeping It Simple for All of Your Financial Needs:
Having your books in order is always an important part of conducting your business, but especially in the uncertain times that we currently find ourselves in.
At Bookkeeping It Simple, we pride ourselves on going above and beyond offering greater peace of mind starting with your books. With our bookkeeping services, you will never have to wonder whether you are in good financial standing and you will always have a plan in place for situations such as the one our country currently finds itself in. Ensure that your business has the financial security it needs to thrive, contact us today to get started. If you need any assistance or have any further questions, feel free to email me at email@example.com. I’ll be happy to assist you!