Budgeting, Money Management, Saving

Money-Saving Tips for the COVID-19 Pandemic

By: Crown Financial Ministries

The Crown team makes it a priority to “practice what we preach”. During this pandemic, as we recommend to cut back your living expenses by 25% for the next 90 days, we’ve made a list for you of the ways we’re doing that ourselves. There are some natural savings that happen when you follow social distancing rules, like spending less on gas, eating out, and entertainment. Below are some additional recommendations from the Crown team for cutting expenses and increasing your savings!

Cut back on any unnecessary or luxury subscriptions

Maybe Spotify free is the way to go for now. Here’s a video with easy ways to do this. Courtney said, “My husband and I both went through the last few statements of our bank accounts looking for subscriptions that we could cancel or downgrade. I didn’t realize I was paying for a few app subscriptions! That has saved us a few extra dollars a month.” Calvin and his wife have cut their gym memberships and are working out at home. They are also saving all discretionary dollars in their budget for a few months.

Negotiate cable and internet rates

You may be able to negotiate a better rate for your cable and/or internet. Businesses are wanting to keep their clients right now, so call to check if there are any special promotions you can take advantage of. “We contacted our internet provider and found that we could save 30% on monthly payment because they could move us to a new promotion package,” Alet said. Another one of our staff members canceled their cable TV altogether. Many streaming services are offering free promotions over the next few months, so be sure to look on Google for coupons before signing up for anything new.

Turn off the lights

Be mindful of your energy usage while you’re home. Do you have a habit of leaving the lights or ceiling fans on? Get up from your home office desk and make sure you’re not paying extra for that electricity!

Defer medical bills

If you need to, call your medical provider and set up a payment or deferment plan. Most will let you do this if you ask and work with them.

Slow down loan payments or stop paying ahead – for now

Several staff members have been paying ahead on their mortgage or student loans. For the next few months, their plan is to pay the required monthly balance as billed and use the extra to increase their savings.

Save on your phone bill

Handre called his mobile provider and moved to a less expensive package saving him each month on his family plan.

Activate the “pantry challenge”

Melinda and her family have challenged themselves to eat out of only their pantry and freezer before going out to eat. Once a week, someone grocery shops for a few fresh essentials for their meals. Other than that, they save money by depleting their stocked food and complying with social distancing rules.

Go meatless

Hannah said her family has moved to 3 meatless dinners a week. It has helped them to mix up their recipes and helped them cut back on their grocery bill!

Save on insurance

One member of the Crown staff said, “I contacted our home insurance company and asked if there were any discounts we could qualify for because of recent improvements we did to our home. A miracle happened – they lowered our yearly insurance amount by $400 and gave me $500 towards this year’s installment because we fixed the roof recently. We had already decided to give to people who were losing their jobs, and now our gifts have been doubled!”

Trusting God’s Promise

We know it’s not fun to take these steps, but we’re trusting in God’s promise that discipline now will pay off later. “For the moment all discipline seems painful rather than pleasant, but later it yields the peaceful fruit of righteousness to those who have been trained by it.” Hebrews 12:11 (ESV) Here are a few other financial steps you can take to find peace and freedom.

Pay off debt

Now is a good time to work on decreasing or eliminating debt. If you need help making a plan, contact our partners Christian Credit Counselors. They’ll help you consolidate your payments so you can be debt-free sooner!

Increase your savings

If you’re not in the habit of saving, now would be a good time to start. To make it easy, check out the Eli Savings App. It automates your savings for you and only saves what you’re able to afford.

Give generously

It may seem uncomfortable right now to think about giving, but it is in these times where we are able to truly show our faith and trust in the Lord. Share the resources you have with your neighbors and friends. Are you able to give more to your church when others might be holding back? Do you know someone furloughed or out of work that can use some help? Find a way to share.

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Credit, Credit Score

Protecting Your Credit During the Coronavirus Pandemic

By: Consumer Financial Protection Bureau (CFPB)

Your credit reports and scores play an important role in your future financial opportunities. You can use the steps below to manage and protect your credit during the COVID-19 (coronavirus) pandemic.

Get a copy of your credit report

If you haven’t requested your free annual credit reports, you can get copies at AnnualCreditReport.com. Each of the three nationwide credit reporting agencies (also known as credit reporting companies) – Equifax, TransUnion, and Experian – allows you to get your report for free once every 12 months. You can request additional reports for a small fee if you’ve already received your free report. Be sure to check your reports for errors and dispute any inaccurate information.

In addition to your free annual credit reports, all U.S. consumers are entitled to six free credit reports every 12 months from Equifax through December 2026. All you have to do is get a “myEquifax” account at equifax.com/personal/credit-report-services/free-credit-reports/ or call Equifax at 866-349-5191.

If you can’t make payments, contact your lenders

Many lenders have announced proactive measures to help borrowers impacted by COVID-19. As with other natural disasters and emergencies, they may be willing to provide forbearance, loan extensions, a reduction in interest rates, and/or other flexibilities for repayment. Some lenders are also saying they will not report late payments to credit reporting agencies or waiving late fees for borrowers in forbearance due to this pandemic. If you feel you cannot make payments, contact your lenders to explain your situation and be sure to get confirmation of any agreements in writing.

The CFPB has resources to help you discuss the impact of COVID-19 on your financial situation with your lenders.

Credit reporting under the CARES Act

The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act places special requirements on companies that report your payment information to credit reporting companies. These requirements apply if you are affected by the coronavirus disease pandemic and if your creditor makes an agreement (called an “accommodation” in the Act) with you to defer a payment, make partial payments, forbear a delinquency, modify a loan, or other relief.

How your creditors report your account to credit reporting companies under the CARES Act depends on whether you are current or already delinquent when this agreement is made.

  • If your account is current and you make an agreement to make a partial payment, skip a payment, or other accommodation, then the creditor is to report to credit reporting companies that you are current on your loan or account. This applies only if you are meeting the terms of the agreement.
  • If your account is already delinquent and you make an agreement, then your account will maintain that status during the agreement until you bring the account current.
  • If your account is already delinquent and you make an agreement, and you bring your account current, the creditor must report that you are current on your loan or account.

This CARES Act requirement applies only to agreements made between January 31, 2020 and the later of either:

  • 120 days after March 27, 2020 or
  • 120 days after the national emergency concerning COVID–19 ends.

The CARES Act also applies to certain federal student loans and includes requirements relating to suspending payments and credit reporting. During the period that payments on federal student loans are suspended by the Department of Education, any payment that has been suspended is to be reported as if it were a regularly scheduled payment made by the borrower.

Routinely check your reports

If you’re working with lenders and other creditors on payment assistance programs or forbearance, routinely check your credit reports to make sure they are accurate and reflect your agreements. For example, if your lender agreed to let you skip one month’s payment, make sure they didn’t report it as delinquent or a missed payment.

There are other reports you may want to check too, such as reports that monitor your bank and checking account history, among others. The CFPB has a list of consumer reporting companies where you can learn more about which reports might be important to you, depending on your specific situation.

Report and dispute inaccurate information

If you find inaccurate information on your credit reports, use the CFPB’s step-by-step guide to dispute that information with the credit reporting agency and the company that provided that information to them, also known as a furnisher.

If an investigation doesn’t resolve your dispute with the credit reporting company, you can ask that a brief statement of the dispute be included in your file and included or summarized in future reports. You can also submit a complaint to the CFPB at consumerfinance.gov/complaint.

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Credit Cards, Credit Counseling, Debt, Debt Consolidation, Debt Settlement, Finance, Loans, Money Management, Mortgage, Student Loans

Protect Yourself Financially from the Impact of COVID-19

By: Consumer Financial Protection Bureau (CFPB)

Steps to take if you have trouble paying your bills or meeting other financial obligations

If you have trouble paying your bills/loans or paying on time, there may be a number of options to help, especially if you reach out early to your lenders or creditors.

Contact your lenders, loan servicers, and other creditors

If you’re not able to pay your bills on time check their websites, to see if they have information that can help you.

The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their community needs.

If you can’t make a payment now, need more time, or want to discuss payment options, contact your lenders and servicers to let them know about your situation. Being behind on your payments can have a lasting impact on your credit.

Credit card companies and lenders may be able to offer you a number of options to help you. This could include waiving certain fees like ATM, overdrafts, and late fees, as well as allowing you to delay, adjust, or skip some payments.

When contacting your lenders, be prepared to explain:

  • Your financial and employment situation
  • How much you can afford to pay
  • When you’re likely to be able to restart regular payments
  • Be prepared to discuss your income, expenses, and assets

Work with housing and credit counselors to understand your options

These trained professionals provide advice for little or no cost, and they will work with you to discuss your situation, evaluate options, and even help you negotiate with your lenders and servicers.

Warning: If you’re considering working with a debt settlement company to address your debts, be skeptical of any company that promises to do it for an upfront fee.

Trouble paying your mortgage?

If you can’t pay your mortgage, or can only pay a portion, contact your mortgage servicer.

It may take a while to get a loan servicer on the phone. Loan servicers are experiencing a high call volume and may also be impacted by the pandemic.

Visit our blog on mortgage relief options for in-depth content to help you understand your forbearance options and avoid foreclosure in light of the coronavirus and the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act.

If you are renting from an owner who has a federally backed mortgage, the CARES Act provides for a suspension or moratorium on evictions. Read more in our renter section of the mortgage relief blog.

Trouble paying your student loans?

If you have student loans, you have options.

If your loan is held by the federal government, your loan payments are postponed with no interest until September 30, 2020.

For other kinds of student loans (such as a federal student loan held by a commercial lender or the institution you attend, or a private student loan held by a bank, credit union, school, or other private entity) contact your student loan servicer to find out more about your options.

Read our FAQs to learn more about what you can do.

Trouble paying your credit cards?

If you’re unable to pay your credit cards, talk with your credit card company and let them know that you cannot make a payment. You may get relief.

You may also want to work with a credit counselor. Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors. There are specific questions to ask to help you find a credit counseling organization to work with.

Trouble paying your auto loan?

Your lender may have options that will help. Our tips include changing the date of your payment, requesting a payment plan, and asking for a payment extension

How to work with your bank or credit union

With many of us staying home to help flatten the coronavirus curve, online banking allows you to handle your finances from the comfort of home. Here are some tips for people who are new to online or mobile banking.

Generally, all bank deposits up to $250,000 are insured by the Federal Deposit Insurance Corporation. Deposits at all federal credit unions, and the vast majority of state-chartered credit unions, are also insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF).

How to work with debt collectors

If you currently have a debt in collections, you can work with collectors to identify a realistic repayment plan.

The Bureau offers a number of resources for contacting and negotiating with debt collection companies, especially as we deal with the impact of the coronavirus.

What to do if you lose your income

State and local governments vary in the programs and offerings to help those financially impacted by the coronavirus.

You can look to your state’s unemployment policies to identify current options for benefits. The recently passed CARES Act allows states to extend benefits to self-employed and gig workers, and to provide an extra $600 per week as well as an additional 13 weeks of benefits. Your state’s public health office may also have information.

Older adults may be impacted by the coronavirus and quarantine procedures in different ways than the general public. There may be government benefits available to older adults who need financial help. Visit benefitscheckup.org for more information and to see if you qualify for any state or local assistance.

Be aware of potential scam attempts

Scammers look for opportunities to take advantage of the vulnerable, especially during times of emergencies or natural disasters. Be cautious of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.

Click here for more information on scams specific to the coronavirus.

The Federal Trade Commission has tips to protect yourself from possible coronavirus-related scams. The FTC and the Food and Drug Administration have also cautioned consumers to be on the look-out for sellers of unapproved and misbranded products, claiming they can treat or prevent coronavirus.

Learn more about how to prevent, recognize, and report fraud and scams.

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