This week, 5.245 million new jobless claims were filed in the United States, which means that 22 million people have lost their jobs in the past month. In a few weeks, the unemployment rate has skyrocketed to nearly 18% due to the economic fallout of the COVID-19 pandemic. With so many people out of work, the current circumstances will have a domino effect as individuals and businesses are struggling to stay current with payments. When the paychecks stop, credit issues start piling up.
5 Tips for Minimizing the Impact of Credit Issues
More than ever, it is essential for consumers to be proactive in protecting their finances during the Coronavirus pandemic. These economic conditions will affect the financial situation of countless Americans, but you can be proactive in mitigating the overall impact these credit issues have on your family. Here are a few tips to help in your time of need:
- Avoid Late Payments if Possible: Even if cash flow is tight, do everything you can to at least make the minimum debt payments on your outstanding balances. You might not be in a position to make much progress on debt paydown, but it is important to stay current with the minimums as much as possible.
- Talk to Your Lenders: Many lenders and financial institutions have policies in place to support customers during the COVID-19 pandemic. It is best to be proactive in exploring your options before you miss a payment. Call your lender to discuss hardship options, such as a temporary reduction in interest rates or payment amounts. Some lenders are offering forbearance or deferment, which means that late payments won’t be reported if you miss a payment.
- Check Your Credit Report: It is more important than ever to make sure that your credit report is accurate. If you have fraudulent activity, it will only make matters worse as you are navigating this difficult financial situation. Make it a priority to check your credit report so inaccurate details can be identified and remedied.
- Credit Report Disputes: Don’t be surprised if you find problems on your credit report. Right now is a great time to reach out to our team for assistance in disputing fraudulent or inaccurate details on your credit history.
- Protect Your Identity: Scammers are working around the clock to take advantage of unsuspecting people. Unfortunately, it is common for identity theft and other scams to increase during times of crisis. For example, reports are coming through of scams around the stimulus payments and other COVID-19 government programs.
Protect Your Credit and Prepare for the Future
What is your strategy for managing credit issues during this unprecedented pandemic? It might be time to enlist the services of financial experts who can help in navigating the credit challenges that lie ahead. If you need assistance, we invite you to contact us for a free consultation.
Our team specializes in credit repair, making it easy to eliminate errors and mistakes on your report. Learn more by scheduling an appointment for a free review of your credit report.
Want more information about your situation?
If you are being harassed by a debt collector or have issues on your credit report, call us at (855) 956-2089 for a free, no obligation consultation at Credit Repair Lawyers of America. Or email me at gary@crlam.com. Visit www.CRLAM.com
Gary Nitzkin, Esq.
Licensed in MI only