More and more individuals are experiencing financial hardships due to the wide reaching effects of the coronavirus. For many, the coronavirus is responsible for reduced wages or job loss. Help is available.
Help comes in forms other than stimulus checks. Most recently:
The Federal emergency Management Agency (FEMA) announced that come April, it will begin providing financial assistance for COVID-19-related funeral expenses incurred after January 20, 2020. Please visit FEMA for further details.
The Center for Disease Control (CDC) released an eviction moratorium order. It protects people from being evicted for not paying their rent if they complete a declaration form and give it to their landlord. This protection lasts until June 30, 2021.
Due to COVID-19, the Veterans Affairs (VA) is extending debt relief for Veterans through September 30, 2021. The VA will suspend collection of all Veteran benefit overpayments incurred between April 6, 2020, and September 30, 2021. Please visit the Department of Veterans Affairs for more detailed information.
The Department of Education (DOE) announces COVID-19 relief for certain student loan borrowers who have received student loan discharges due to total and permanent disability. Please visit the DOE website for more infomation about this important step.
Dealing With Debt During the Coronavirus Pandemic: Tips to Help Ease the Impact from the Consumer Financial Protection Bureau
FCAA member agencies are on the front line working with consumers in debt every day.
The ravaging effects of the coronavirus on consumers’ financial lives makes the help they offer more indispensable now than ever. Our member agencies’ certified credit counselors can help you navigate unsecured credit card debt, medical debt and payday loans. can discuss various remedies for homeowners experiencing financial hardships and can walk through student loan repayment options with you.
If you are currently enrolled in a Debt Management Plan, are working with an FCAA member and are experiencing coronavirus related financial hardship, please call the agency you are working with. There’s a good possibility the agency can offer other options to you regarding debt repayment.
On behalf of its members and the consumers they work with, FCAA is also working to bring new solutions to consumers to help them repay their debts. Less-Than-Full Balance is a plan agencies are currently piloting. If you have accounts in charge off status, you may want to call an FCAA member to see if the Less Than Full Balance program is right for you.
Please know that if you are experiencing financial hardship for any reason, coronavirus related or not, an FCAA member agency would be happy to speak with you to discuss your unique situation and get you on the road to financial wellbeing.
Call 1-800-450-1794 to be connected to an FCAA member agency licensed/registered in your state.
Federal law has given states greater flexibility to amend their laws to provide unemployment insurance benefits for multiple COVID-19 related scenarios.
Although unemployment insurance programs are administered on the state level, all states follow the same federal guidelines. For more information about the unemployment rules in your state, please
contact with your state’s unemployment insurance program.
If you own your own home and your ability to make your monthly mortgage payment has been affected by coronavirus related reduction in wages or job loss, there is help. Payments on federally insured mortgages (meaning backed by Fannie Mae, Freddie Mac or insured by the Federal Housing Administration), you are eligible for forbearance. Lenders may also be willing to work with you if your mortgage isn’t federally insured.
No matter the type of mortgage, please contact the mortgage servicer listed on your mortgage statement for help.
If you live in a rental apartment and your ability to make your monthly rent payment has been affected by coronavirus related reduction in wages or job loss, you are urged to contact your landlord immediately. There are many scenarios under which you could benefit from a temporary moratorium on eviction.
Homeowner or renter, we strongly encourage you to visit the Freddie Mac website for details about available help.
You can also look here for information from the Federal Trade Commission for temporary help for home renters.
Student Loan Repayments
All student loans owned by the Department of Education (Direct Loans, Federal Perkins Loans and Federal Family Education Loans held by the DOE) are eligible for interest waivers and suspended payments. For more information about interest waivers and suspended payments, please contact your loan servicer.
If you have loans directly issued by your college or by a private lender, you are encouraged to contact them with questions about relief.
The national credit bureaus have processes in place for lenders to report accounts in deferment or forbearance during this COVID-19 crisis. Once reported as a deferment or forbearance due to the COVID-19 crisis, there will be no negative effect on one’s credit scores with FICO or VantageScore. But make sure to call your lender!!
FCAA member agencies are ready to help. Please call 1-800-450-1794 to be connected with an FCAA member agency licensed/registered in your state and speak with a certified credit counselor who can help you on the way to financial recovery.