In the past few months, U.S. households have struggled to make payments on their homes due to the weeping pandemic. Many of those households lost their jobs or are on furlough from their jobs. Unemployment income is not enough. The delay of these supplemental income sources is adding to the misery of trying to keep up.
Like in any period of time when the United States experiences economic downturns due to industry failure, disease, or natural disasters there comes effects that trickle down to American citizens.The effects include people losing their jobs and being impacted heavily. However, there are ways for Americans to position themselves better during harsh times. In fact, one of the most important things is to seek forbearance or deferment options for your home mortgage.
Cutting The Costs
Today, the people have multiple service subscriptions. In fact, many of them have more subscriptions than open credit card balances. For example, subscriptions like Netflix (182 Million subscribers) and Amazon Prime (150 million subscribers) have almost half the U.S. population in terms of subscription numbers. Therefore, cutting personal costs is essential to the ability of meeting debt obligations.
If we take a look at the average American, we find out that they are paying off their debt and barely affording to stay afloat. Otherwise, they would sink. The way we can achieve surviving is by canceling service subscriptions and saving that money aside. When we do that we are putting ourselves in a better financial situation in case anything out of the ordinary comes up.
Forbearance and Your Home
Times are tough and are only getting tougher. However, this does not mean we will lose or should put ourselves in the position of losing our homes. Where there is a problem, there is a solution and that solution is forbearance or deferment. Just like we do when we are unable to pay our student loans for a period of time due to hardships. We can do the same thing when we lose our jobs during times like today’s COVID-19 pandemic.
Forbearance does not erase your loan and what it means is that you have to repay what you missed in the future. If you do not believe you can do that then, contact your mortgage lender and find out how you can work things out with them. Some mortgage lenders may be lenient in their rules and offer discounts or deferments in monthly payments where you would only pay the interest or nothing for a month or two.
For mortgages backed by the federal government, you would be able to temporarily suspend your monthly payment under the CARES Act. This includes loans that are FHA, VA, USDA, Fannie Mae and Freddie Mac. The Cares Act also provides more information on how you can receive assistance if you have a small business, preserving your job, assistance from your local state government, etc.
We are survivors and that means we can survive on pita bread and olives if we have to. In this pandemic holding money is crucial because we cannot predict the future. To reduce spending we have to enact better habits. Buying fixed food from the outside should not be an option. Cooking in-house is the best option. However, you should also not go extravagant with your in-house cooking. Keep it simple and low cost. Otherwise, you will see yourself visiting the grocery store multiple times per week.
Clothing and technology trends are drivers of personal decisions. However, during times like this we should not be spending our relief packages or unemployment income on any clothing or tech. All cloth and tech shopping should be halted to when things are normal again.
Learn To Adapt
Our biggest weakness is our desires and the reason for that is because we love to groom ourselves with outside services. However, to enact the above “Reduce Spending” option we should learn how to do the services we are accustomed to on our own. Even if these shops open up we should still be very vigilant with our service runs and reduce them. This will keep more money in our pockets which we can save for a rainy day or use it towards our retirement fund.
Learn To Garden
You might say gardening takes forever. I say you are wrong because gardening like planting fresh veggies will be available to harvest in one month. You can do so outdoors or in your house as long as you maintain or aware of temperatures being between 60-100 degrees. Once you are able to harvest your veggies you will be reducing your cost of grocery shopping by 50%.
Harvested veggies contain full nutrients and taste. Even if you buy the veggies or fruits from the organic section of the store they do not even compare to your own harvested plantations. For residents living in Michigan read my blog on “How I Start My Gardening Every Year.”