COVID-19 has caused many people around the country to lose their job and need debt relief. Unfortunately, Hawaii has been hit harder than many other states, with a 22.6% unemployment rate. Losing your income can quickly lead to problems, including debt. Here are a few tips to help with your finances during this difficult time. 

A Guide to Debt Relief During the Pandemic

1. Stick to Essential Spending

Spending more than you’re earning from unemployment payments will make it even harder to get out of debt. To protect your finances, only buy essentials. For example, avoid getting take-out from restaurants, and skip that fancy coffee drink next time you’re out. Even when purchasing groceries, you can save significantly. Stick with generic brands, look for deals, and use a smaller basket or cart. 

2. Prioritize Your Bills

If you’re having trouble paying your bills, cover the most important ones first. For example, never miss out on rent or mortgage payments; you could lose the roof over your head. Additionally, always file taxes and cover your child support, as you don’t want to be penalized by the IRS or the courts.

If you can’t pay these bills, get in contact with your landlord, bank, lawyer, or the government as soon as possible; you may be able to work out a favorable plan that allows you to make up payments over time. Many people are going through financial problems during COVID-19, so these parties may be more understanding.  

3. Contact Your Credit Card Company

If you suspect that you won’t be able to pay a credit card bill, contact the company right away. Let them know that you’ve been impacted by the pandemic, and ask if they have any financial relief programs for those in your situation. Also, have documents ready, such as unemployment payments, to demonstrate your financial position. 

Once you’re on the phone with the credit card company, ask if there will be fees on their debt relief programs. Also, find out how long you have to pay off your bills. Finally, make sure you know what information credit reporting agencies will be informed about; keeping track of your credit score will protect your financial interests if you need a loan or want to buy a home in the future. 

If you’re in a difficult financial position due to the COVID-19 pandemic, contact Donald L. Spafford, Jr., Attorney at Law. Serving Oahu, HI, this firm will help you file for bankruptcy and get debt relief. Attorney Spafford has more than 30 years of experience working with clients to improve their financial situations and protect their families. Call (808) 532-6300 to set up a consultation, or visit them online to learn more about their services.