The United States unemployment rate has recently reached an all-time high of 14.7% due to the widespread temporary and permanent closing of businesses across the country. This means a lot of people are now finding themselves suddenly unable to pay off their piling bills after having lost their income.
The good news is that you can breathe a small sigh of relief as lenders and utility companies seem to be understanding of the plight you and many others are facing.
Here are some bills you can skip on paying for now.
Subscriptions and Memberships
Your knee jerk reaction is probably to cancel all unnecessary subscriptions and memberships to cut back your spending quickly.
Keeping a subscription to your favorite streaming service may feel frivolous, but it would be a smart move considering that being stuck at home is the one time you’ll need entertainment the most.
Instead, consider doing away with season pass tickets to amusement parks and your gym membership.
Credit Card Payments
Missing credit card payments can be damaging to your credit score. Luckily, a lot of credit card issuers are accommodating the concerns of borrowers that may have been financially impacted by the pandemic.
If you can’t make your payments, call a representative from your issuer so you can discuss what repayment options they can give you as you skip payments.
With people stuck inside their homes for days on end, it’s unavoidable to rack up expensive bills for electricity and other utilities. WiFi use is also at a high as family members access the Internet all at the same place and time.
Don’t fret though, companies like Minnesota Power and Xcel Energy have already said they’ll continue servicing households even if they can’t pay their bills right now.
Student Loan Payments
If you have federal student loans, rest assured that you won’t have to make your repayments until the end of this coming September. Thanks to the CARES Act, your skipped payments won’t be penalized, leaving your credit score untouched.
Meanwhile, those with private student loans are encouraged to contact their lenders to talk about their options. Some lenders are reportedly offering payment relief to those affected by the coronavirus.
Similarly, homeowners who find it impossible to pay their mortgage can talk about forbearance with their lenders. Federal mortgage companies have offered forbearance for up to a year, beginning from the 1st of July.