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TRENDING BASIC MONEY MANAGEMENT TIPS
09.21.2020 / Borrowing « Back to all articles
Requesting Payment Extensions Amid COVID-19
The 2020 pandemic has made even people who have never missed a bill payment start to wonder how to make ends meet. As businesses shut down across the country — some potentially never reopening — many people find themselves without jobs or between jobs. The good news is that you can request payment extensions due to COVID-19. The big question is how.
1. Check Your Budget
Once you take a good look at your budget, you can better identify the deficit. From there, you can begin to prioritize what payments you absolutely cannot miss. Even though it’s a good idea to start with a priority list, remain open to moving debt obligations down the line if you can get payments deferred.
2. Contact the Company
Whether you owe your landlord, the utility company, or the bank, give them a call. Prepare documents to substantiate your claims of financial difficulty if necessary. You should also provide an estimate of how much you can pay or when you might catch up on payments again.
3. Request an Extension
In the best-case scenario, the company allows you to defer payments for a few months. However, pay attention to the terms and conditions before agreeing. Some companies might defer payment for a few months but require a lump sum catch-up payment at the end of the period.
4. Propose a Payment Plan
If the above request proves unsuccessful, ask about potentially reducing your monthly payment or moving to a payment plan. Some lenders might agree to this for a specific period of time and then tack on the extra balance to the end of your loan. You are more likely to get this perk if you have a good track record with the company.
5. Ask To Change Payment Dates
If none of the above requests prove successful, ask for a date change. This comes in handy if your due dates do not coincide with when you get paid. Changing the payment date might also buy you an extra week or two to get the money together. Some lenders make this so easy that you can do it from an app.
6. Seek Professional Assistance
You can either work with special bill extension apps, hire a professional credit counselor, or use both resources. Apps might help you identify what bills you stand a better chance of deferring. Counselors can provide more in-depth advice to help you adjust and get your finances back on track.
Credit Talk
09.21.2020 / Borrowing « Back to all articles
Requesting Payment Extensions Amid COVID-19
The 2020 pandemic has made even people who have never missed a bill payment start to wonder how to make ends meet. As businesses shut down across the country — some potentially never reopening — many people find themselves without jobs or between jobs. The good news is that you can request payment extensions due to COVID-19. The big question is how.
1. Check Your Budget
Once you take a good look at your budget, you can better identify the deficit. From there, you can begin to prioritize what payments you absolutely cannot miss. Even though it’s a good idea to start with a priority list, remain open to moving debt obligations down the line if you can get payments deferred.
2. Contact the Company
Whether you owe your landlord, the utility company, or the bank, give them a call. Prepare documents to substantiate your claims of financial difficulty if necessary. You should also provide an estimate of how much you can pay or when you might catch up on payments again.
3. Request an Extension
In the best-case scenario, the company allows you to defer payments for a few months. However, pay attention to the terms and conditions before agreeing. Some companies might defer payment for a few months but require a lump sum catch-up payment at the end of the period.
4. Propose a Payment Plan
If the above request proves unsuccessful, ask about potentially reducing your monthly payment or moving to a payment plan. Some lenders might agree to this for a specific period of time and then tack on the extra balance to the end of your loan. You are more likely to get this perk if you have a good track record with the company.
5. Ask To Change Payment Dates
If none of the above requests prove successful, ask for a date change. This comes in handy if your due dates do not coincide with when you get paid. Changing the payment date might also buy you an extra week or two to get the money together. Some lenders make this so easy that you can do it from an app.
6. Seek Professional Assistance
You can either work with special bill extension apps, hire a professional credit counselor, or use both resources. Apps might help you identify what bills you stand a better chance of deferring. Counselors can provide more in-depth advice to help you adjust and get your finances back on track.
