More than 1.6 million jobless workers in Michigan have filed for unemployment because of the effects of COVID-19, the infectious disease caused by the novel coronavirus.
For some, this is the first time dealing with unemployment. When it comes to financial fears, paying for daily living expenses and debt often top the list of anxieties.
Whether you have credit card debt, student loan debt, or are worried about losing your home or car, debt is often a major stress point in households. To soothe some of your worry and anxieties, focus on things you can control.
First, determine the amount of money you will have. In other words, identify any income and assets and add them up.
Next, review your expenses. What is the minimum amount needed to survive?
This is the time to scrutinize all expenses. Decide what can be eliminated, replaced, or reduced. If you have federal student loans, those payments have been suspended until September 30, 2020.
Prioritizing your bills is extremely important. Your top goals should be keeping a roof over your head, food on the table, functioning utilities, and prescription medication.
Are you eligible to receive unemployment benefits (including up to $600 per week federal in addition to the state amount) and food benefits? There may be programs to help pay utilities, mortgages, childcare, and prescriptions. Call Michigan 211 or check with the Unemployment Insurance Agency to find resources that will help you.
Don’t forget to factor in health care. You have a few options from which to decide:
Another important task is to contact your creditors. You should contact them as soon as possible, especially if you are concerned about continuing to make your payments.
Contact a U.S. Department of Housing and Urban Development certified housing counseling agency if you suspect that you will not be able to sustain your mortgage payments.
This is also an opportune time to obtain a free copy of your credit report. This will give you a clear picture of who your creditors are and give you a chance to clean up any inaccuracies.
Be proactive and follow these steps as you assess your situation and make a plan to move forward.
