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Coronavirus Have You Out of Work? Here’s How Debt Consolidation Can Help

debt consolidation
  • Blog
  • Jill
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  • May 4, 2020

Coronavirus Have You Out of Work? Here’s How Debt Consolidation Can Help

Since the beginning of the coronavirus pandemic, millions of Americans have been out of work. Whether you are only staying at home for a few weeks, or for an unknown amount of time, not having a regular paycheck to depend on can be unsettling. Many laid-off workers have signed up for unemployment benefits. While that can help supplement the loss of income, for some it doesn’t quite make ends meet. Others may not be eligible for unemployment benefits for various reasons and are now facing a mountain of debt as a result. Therefore, most people are looking into debt consolidation. 

How Debt Consolidation Makes Things Easier For Those Who Are Unemployed During the Coronavirus Pandemic

Unemployment can cause stress no matter when it occurs. But dealing with unemployment and the fear of not being able to support your family while the entire world is facing a pandemic is a type of stress that no one has ever dealt with in the past. 

Debt consolidation is one option that can help you minimize your stress level. By taking care of your outstanding debts, you will have more money available to cover your basic needs such as food or rent during this unpredictable time. 

Here are a few steps that you can take toward consolidating debt and providing yourself with some peace of mind. 

Contact Banks and Lenders 

If you currently have loans from a bank or other lender that you are behind on, get in touch with them. They may reduce or waive their late fees temporarily because of the current situation everyone is in. Several financial institutions are now deferring loan payments and there’s a good chance they are willing to work with you. 

If your bank or lender isn’t waiving late fees or deferring payments, you may want to consider filing for bankruptcy. Once debt gets to a point where it is impossible to pay back, consider bankruptcy as an option. This point usually involves debt with high principal and soaring interest. Overextended credit is the most common reason people file for bankruptcy. There are various factors that lead to the decision to file for bankruptcy. Unemployment, large medical bills, or even marital problems are all common reasons for filing. 

Evaluate Your Finances to See if Debt Consolidation Works For You

Right now you need to focus on the necessities. If there is anything you are making payments on that you can do without, for the time being, it would be a wise decision to cancel them. Streaming TV services can be very useful while we are all stuck at home, but if there are any you don’t watch often, canceling them can help put some extra cashback in your pocket. Choosing more affordable packages for cable or your cell phone’s data plan can also help out. While it may be difficult to give up some of these things, keep in mind that this is only temporary. 

Apply for Short Term Help 

Some financial institutions are offering emergency loans for those who need assistance before their unemployment benefits start. These loans are usually for a few thousand dollars at the most and the payments can be deferred as much as 90 days. 

You can also look into what community resources are available to you. Although schools are closed, many still provide free meals for students. If you could benefit from this service, be sure to find out if your local district is offering food distribution. You can also find out about getting help from local food pantries or community kitchens. 

If you have recently been laid off due to the current situation with the coronavirus, and are facing issues with debt, there is help available. At Bartifay Law Offices, P.C., we are your Bankruptcy and Foreclosure Defense Attorneys. Get in touch with our team today for assistance. 

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