Tuesday, March 17, 2020 Among the various consumer data privacy laws are laws precluding companies from collecting and selling consumer credit card information. When a company is accused of selling its customers’ credit card information to third-parties in a class … Continue reading →
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Credit unions from Maryland to California are stepping up their operational restrictions that may help stem the spread of coronavirus and protect members and employees. Some recent examples include the $427 million Signal Financial Federal Credit Union in Kensington, Md., … Continue reading →
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The central bank will buy short-term promissory notes, known as commercial paper, a move it made during the 2008 financial crisis. Jerome H. Powell, the chair of the Federal Reserve, which has taken several steps to keep the economy and … Continue reading →
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The rapid spread of the latest coronavirus, COVID-19 has already impacted the financial lives of millions of American households and shows no signs of diminishing any time soon. Where does this leave you and your family in terms of your financial preparedness for the potential economic downturn? Have you reviewed your ability to manage on reduced work hours or to survive a layoff? What does that mean in terms of your current financial obligations like rent, mortgage, auto loan, credit cards and utilities? Successfully managing your available resources requires open lines of communication with everyone who has a stake in your financial health.
Here are three conversations you should have right now in order to minimize the financial impact of the COVID-19 crisis.
Your Family
Open and frequent communication about finances can help make a crisis much easier to manage among family members. Even if you are the only one in your household, it is important to review your savings and fine tune your budget based on your current needs and future goals. Your personal savings will play an important role in an emergency but having an emergency spending plan will help you make that savings go farther. Work with everyone in your household to determine what is necessary and what expenses can be cut. Discuss which alternative budgets will work best and consider going off script to develop the best plan for your unique circumstances. For example, the popular 50/30/20 rule may work well during normal times, but the 30% recommended for entertainment and other discretionary expenses would not be appropriate during a time of belt-tightening.
Your Employer
The prospect of having work hours cut or eliminated can add a tremendous amount of stress to an already unsettling situation. Job stress resulting from these unknowns can have a detrimental impact on how you manage through difficult times. Make sure you understand what options are available for the continuation of employment and any income adjustments that may result from staffing changes. Knowing those details can help you anticipate when you will need to implement changes to your household budget. The discussion should also cover your benefits and their status if employment is terminated or hours are cut. When possible, make use of your Employee Assistance Plan (EAP) to receive counseling and access to other support services that can help you manage during times of economic disruption. Also keep in mind that there are some industries hiring to meet additional demand as more people adapt and shelter in place. If loss of income seems imminent, explore ways to generate a supplemental income stream with an employer or in the gig economy.
Your Lenders and Utilities
Being proactive can make a big difference when dealing with all sorts of financial obligations ahead of a crisis. There are already lenders and service providers offering special assistance for people with questions about managing bills during the coronavirus pandemic. It is likely that there will be an increasing level of guidance as the virus continues to impact more communities. When you are certain that your wages will be reduced or eliminated, contact each of your financial obligations to make them aware of the situation. Be honest and as detailed as possible about how the change will impact your ability to pay your account. Even if they offer special recommendations in response, always ask if there are other options for you to consider. The more informed you are about your choices, the more likely you will find the most appropriate solution. Sometimes these discussions can be overwhelming, and you are provided a lot of information to process. It is reasonable to ask for some time to consider your options and review the information, and you should also request to have details provided in writing by text or email.
There is no shame in reaching out for help in a time of need, so don’t hesitate to contact a nonprofit credit counseling agency for guidance when you feel confused or overwhelmed. Trusted agencies like those affiliated with the National Foundation for Credit Counseling (NFCC) have been helping people overcome financial challenges since 1951 and are here to help you no matter your circumstances.
The post Three Conversations You Should Have Right Now Regarding Coronavirus and Your Finances appeared first on NFCC.
Read more: nfcc.org
Here is a list of the top creditors and their offerings during the Coronavirus pandemic:
Bank of America
https://about.bankofamerica.com/promo/assistance/latest-updates-from-bank-of-america-coronavirus
As the economic situation evolves and you continue to monitor your personal finances, Better Money Habits has information and know-how that can help you make more informed decisions.
For questions or advice, we’re here for you. Visit a financial center to meet with a specialist, call your Financial Advisor or Contact us.
Chase
https://www.chase.com/digital/resources/coronavirus
If you need help…
… with your accounts or payments, please call us at the number on the back of your credit or debit card, or on your monthly statement.
Capital One
https://www.capitalone.com/coronavirus/
We also understand that there may be instances where customers find themselves facing financial difficulties. Capital One is here to help, and we encourage customers who may be impacted or need assistance to reach out to discuss and find a solution for you.
Should you find yourself in need of assistance, please contact us.
Wells Fargo
https://www.wellsfargo.com/jump/enterprise/coronavirus-response
Wells Fargo is committed to helping customers experiencing hardships, including from the COVID-19. If you’re in need of assistance, call us at 1-800-TO-WELLS (1-800-869-3557) to discuss options available for your consumer lending, small business, and deposit products.
Citi
https://online.citi.com/US/JRS/pands/detail.do?ID=covid19
Should you be impacted by COVID-19 and need our support, we’re here to help. Effective Monday, March 9, 2020 for an initial thirty days, contact us for assistance with:
For Retail Bank Customers: Fee waivers on monthly service fees; waived penalties for early CD withdrawal.
For Retail Bank Small Business Customers: Fee waivers on monthly service fees and remote deposit capture; waived penalties for early CD withdrawal; Bankers available after hours and on weekends for support.
In addition, we have always on assistance programs, including:
For eligible Credit Card Customers: Credit line increases and collection forbearance programs.
For eligible Mortgage Customers: A range of hardship programs through our service provider, Cenlar FSB. Please contact them at 855-839-6253 (M-F 8:30am – 8pm ET, Sat 8:30am – 5pm ET Monday to Friday 8:30am to 8pm ET, Saturday 8:30am to 5pm ET).
Discover
If you have been impacted by COVID-19, our team is here to help.
Contact us any time online, by mobile app or phone.
*List will be updated as we have more information.
The post Creditors Response to COVID-19, Coronavirus Pandemic appeared first on NFCC.
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A lot of people now boast credit scores above 700. Here’s why that matters. A credit score above 700 is generally considered a good score. Many Americans have hit this milestone and, by doing so, opened the door to competitive … Continue reading →
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Concerns about the spread of coronavirus disease 2019 (abbreviated COVID-19) mean more of us are doing what we probably should have been doing all along: washing our hands more frequently and thoroughly; staying at home when we’re sick; stocking up on food and supplies in case that stay becomes extended.
People who may have been exposed to the new coronavirus or who get sick with COVID-19 may be advised to stay home for as long as 14 days to keep from spreading it to others, according to the Centers for Disease Control. That’s led many people to wonder if they could manage for two weeks at home without a run to the grocery store.
Stocking up shouldn’t mean panic-buying cases of toilet paper at the nearest warehouse store, of course. But keeping a reasonable supply of shelf-stable food and other supplies on hand makes sense for all kinds of emergencies, from natural disasters to stretches of unemployment.
At the same time, it’s important for your wallet and your community not to hoard stuff you don’t need. You can spend a small fortune on N95 masks, for example, but those are better reserved for the health care workers who can help those who become sick enough to need treatment. Likewise, there are companies selling emergency food kits with a decades-long shelf life, but those may include stuff you or your family just won’t eat. That’s a waste of money and food.
A better approach is to create a two-week cache of food based on the “store what you eat, eat what you store” principle that I detailed in “The Emergency Fund You Can Eat.” The basics:
Write down two weeks’ worth of meals. Consider what your household would eat for breakfast, lunch and dinner during that period, including mains, side dishes, beverages and desserts. Include snacks and treats that could make a potentially stressful time a little easier, as well as foods that could help someone with flu symptoms, such as broth, herbal tea, ice pops and electrolyte drinks.
Adapt ingredients, as necessary. In a natural disaster such as a hurricane or earthquake, utilities including water, fuel and electricity could be disrupted, so it’s important to have alternative cooking sources, such as a camp stove, as well as an emergency water supply. In a disease outbreak, utilities likely won’t be interrupted, but you may not have ready access to perishables or have the energy for elaborate meals. (Restaurant and grocery delivery may be an option, but that can get expensive if used for every meal.)
Shop and store. Once you have your ingredient list, shop using coupons and sales to minimize the additional cost. Find storage, preferably where the food won’t be forgotten.
Use and replenish. About once a week, create a meal using your stockpile, starting with the stuff closest to its expiration date, and then replace what you’ve used. In that way, you’ll rotate through your two-week stash of 42 meals in a little under a year.
It’s smart to have a similar approach to other necessities, including hand soap, disposable facial tissues, toilet paper, diapers, pet food and litter, household surface cleaner, laundry and dish detergent, and hygiene supplies. Figure out how much your household is likely to use each week, and keep at least a two-week surplus on hand.
Likewise, the Department of Homeland Security recommends that you regularly check your prescription drug supply, and keep nonprescription drugs and medical supplies on hand. These can include pain relievers, cough and cold medicines, and vitamins.
Liz Weston is a writer at NerdWallet. Email: [email protected]. Twitter: @lizweston.
The article How to Stock Up Wisely, Emergency or Not originally appeared on NerdWallet.
The post How to Stock Up Wisely, Emergency or Not appeared first on NFCC.
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On March 4, the U.S. Court of Appeals for the Fifth Circuit affirmed summary judgment in favor of a debt collector (defendant) accused of violating the FDCPA and the terms of a CFPB consent order. According to the opinion, the … Continue reading →
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The coronavirus (COVID-19) continues to spread and is now considered a pandemic. People are scrambling to gather essentials for their homes and are on high alert wondering how this situation will continue to evolve and what effects it will have on the economy, work and the coming months. Unfortunately, it’s unpredictable how exactly everything will pan out but one thing’s for sure, is it is wise to prepare.
As we prepare for more school closings, businesses and mandatory working from home, here are some steps you can take:
Contact your creditors as soon as possible. If you anticipate the inability to make your monthly credit card payments, it’s important to open that line of communication. Ask for temporary hardship concessions like interest-only payments or forbearance.
Keep priority obligations on track. First and foremost, it’s important to pay your rent or mortgage. If you experience loss of job or income, be sure to maintain open communication with your creditor or landlord.
Develop an emergency spending budget. This is a leaner much stricter version of your budget. Pause all “fun budget categories” like dining out, extracurricular activities, anything that is more of a want than a need. Set a realistic budget for utilities and food expenses. Make a list of all your current obligations. Circle the things that are wants so you can see how much you could realistically save if you pause subscriptions, limit travel and make affordable meals at home.
Identify community resources and if there are any government assistance programs available. Government officials are still working through what options and if there will be opportunities for health care reimbursement established in the coming days. Communities agencies may help with food banks, temporary assistance with utilities, etc.
Reach out to a nonprofit financial counselor to find ways to eliminate debt and reduce financial obligations. Debt is often the roadblock that keeps people from being able to establish financial stability. According to CNBC, the biggest hurdle that is causing people to live paycheck to paycheck and preventing them from building an emergency savings fund is debt.
If you have limited resources and not much in a savings account, you are not alone. About 40% of Americans say they don’t have $400 available to cover unexpected bills. With so many living paycheck-to-paycheck, even missing one paycheck could lead to financial struggle.
Now is a good time to prioritize paying down debt to the best of your ability because interest rates are typically highest for revolving lines of credit. To do so, The NFCC is here to help! Our nonprofit credit counselors are on standby to help you strategize and figure out the best way to make it through this uncertain financial season. Amid trying to stay healthy and manage your households, it’s important to not have the worry and stress of debt.
Get a financial checkup today!
The post 5 Steps to Prepare Yourself Financially for the Uncertainty of Coronavirus appeared first on NFCC.
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On March 9, the FTC filed a complaint against a Colorado-based credit repair company and its owner for allegedly making false representations to consumers regarding their ability to improve credit scores and increase access to mortgages, personal loans, and other … Continue reading →
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