A lot of people are spending less money simply because there is no place to spend it. I think that’s great, but as a financial plan it’s not very sustainable. If you’re looking to be a little more consistent in your coronavirus-inspired cost-cutting, there are some opportunities available now that will dry up when life returns to normal.
- The CARES Act is suspending payments on student loan debt until September 30th, with no interest. While they’re doing that, it’s a good time to pay off your higher interest loans like credit cards and car payments.
- Allstate, Geico, and Liberty Mutual are giving refunds and credits. Check with your automobile insurance company to see if they’re giving refunds — because their competitors are.
- Life insurance companies are suspending in-person medical exams for their policies. That means it’s probably a good time to get a term life insurance policy.
- Try to negotiate with your credit card companies. Some of them are waiving late fees and lowering interest rates, making it a good idea to get in touch with your credit card companies and see what they’re offering.
- Mortgage companies are also showing some flexibility during this time, so talk to your representative. If you’re out of work maybe they’ll give you a one-month waiver. It’s all done on a case-by-case basis, so you’ll never know if you don’t ask.
Everyone is telling you “This is a good time to…” — but a month’s reprieve from your mortgage payment literally is not going to happen again. This is a great time to take advantage of any lifelines being thrown at you — especially if it could help you avoid a late payment or missing a payment.
Stay safe and healthy and if there is anything we can help you with, please don’t hesitate to ask. We are always here for you.