With the Corona Virus Pandemic, there are a lot of people who are now laid off. While these lay offs are supposed to be temporary, who knows how long that might last? Even more importantly, what happens if you can't pay your bills? What will happen if you can't pay your credit card bills? Your mortgage? Your car payment?
Almost everyone knows, not paying your bills could destroy your financial future. But what really happens when you just can't pay? These are just a few things to expect:
- Late fees on every bill that you're unable to pay
- The APRs on your credit cards will spike
- Every loan you apply for in the next ten years will have a much higher interest rate
- Mortgages, car loans, and personal loans will cost more, assuming that you can get any of them
- Better credit card companies will not approve you, meaning you will not be eligible for cash back and rewards programs
- Rental applications may be declined and/or they may request a larger deposit or advance rental payment
- Credit checks done in conjunction with employment may cost you the job
Essentially, your entire life will get harder, especially anything having to do with money. How can you avoid this? First off, if at all possible, make those minimum payments! Call your mortgage company or your auto loan provider and ask for deferrments, interest only payments, whatever they will agree to. Be honest! Remember, you're not the only one who is in a financial hurt. They will be dealing with many others just like you, and chances are, they have options they can offer to help you. Don't wait until you're already late – call as soon as you know you won't be able to make a payment. And then, take advantage of every single opportunity you have to resolve your inability to pay until you get back on your feet again!