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.
- HUD-Approved Housing Counselors. The U.S. Department of Housing and Urban Development (HUD)-approved housing counselors can discuss options with you if you’re having trouble paying your mortgage loan or reverse mortgage loan. This may also include forbearance or a modified payment program.
- Credit Counselors. 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.
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.