Worries about COVID-19 have impacted daily habits and how we are interacting with others around us. As Stay at Home orders have been in place, millions of people across the country have been pushed out of work. When the income stops or slows down, it results in a challenging circumstance: many people are unable to pay their bills.
Debt Increases Financial Burden
During this economic hardship, not only are you looking for ways to pay rent and buy groceries, but debt minimums need to be paid as well. Families carrying high debt balances are experiencing more financial stress because of the unpaid bills. Unfortunately, there isn’t much “wiggle room” to pay for some of the costs of living.
More than ever, this pandemic and economic downturn is a good reminder to reduce unnecessary debt as much as possible. Many people are changing their spending habits to focus only on essential costs. When extra money is available, the best solution is to pay down the debt balances, helping to decrease future financial burdens.
Solutions for Unmanageable Debt
Even if you are diligent with your payments, it might feel like you are never going to get ahead financially. Here are a few options you might consider for managing your debt load:
· Income: If you can’t find a job to restore your income, file for unemployment to bring in a bit of money to cover costs. Not only is unemployment available for people who have been laid off, but these benefits are also available if your hours have been cut.
· Creditors: Talk to your creditors to explore payment options. For example, many mortgage lenders and credit card companies are providing financial assistance in the form of delayed payments.
· Bankruptcy: It might make sense to file bankruptcy so you can clear the debts and have a fresh start financially. If you are considering bankruptcy, then it is important to reach out for the support of an experienced legal team.
At Miles & Hatcher, LLP, we are here to assist with all of your legal needs during Coronavirus and beyond. If you are looking for legal help with your debt, then contact us to learn about the available services. You can call to book a free consultation: (909) 481-4080.