We are living in unprecedented times. For many of us that means going on without full-time jobs, living off of unemployment, or taking odd jobs in order to make ends meet. We all hope this changes in the near future, but there is no real indicator as to when all of this might end and when life as we had known it can return. If you find yourself falling behind your credit card payments while debt continues to pile up you are probably stressing as you're not really sure what to do or where you can turn to. Well, there are a number of COVID-19 credit card and debt relief options out there. You may not qualify for all of them, but here are some of the very best you should look into and consider.
Loan Repayment Assistance
Just about every bank and credit union is currently offering some sort of debt relief and loan repayment assistance. From putting freezes on payment requirements to lowing what you owe each month, your bank will likely work with you on this. So whether you have a credit card through Citibank, a loan through SoFi, a mortgage via Navy Federal Credit Union, or another bank altogether, there's a good chance the bank will have some kind of option for you.
What kinds of options are available? Well it just depends. Some will offer increased credit limits that you might not normally have access to, others will provide waivers on late fees, and there are others that will provide some forbearance when it comes to your student loans. So no matter what kind of loan you have outstanding or what kind of credit card you have in your wallet, the financial institution will help out.
Drawing On Your 401(k)
In normal circumstances you would be told to never draw on your 401(k) early. This is because there's a rather large and substantial penalty slapped onto you and the money you pull out. However, the federal government is currently waiving this early withdrawal penalty. While it isn't always ideal to take money out of your retirement funds, if it means you can avoid higher interest rate loans or piling more credit card debt onto what you already owe this may be an option you should take advantage of. Currently it is possible to take out up to $100,000 without penalty (although it will depend on a handful of circumstances, including what you have saved away).
Additional Stimulus Payments
The first stimulus payment has come and gone. While debate is still running through congress, a second stimulus payment will eventually come out. This will be additional money you can use to pay your debts and to help put food on the table. Depending on how much longer the current situation lasts there is always the possibility of future stimulus payments.
Credit Card and Debt Relief Is Available
Credit card companies and other financial institutions fully understand what is going on. Most of these companies want to do whatever they can to help you through it. After all, if you're forced to file for bankruptcy protection it means they will not get the full amount you owe, so it is in their own interests to assist you. While you go through these different tips and suggestions you should also consider simply asking your credit card company or your financial lender for help. Tell them the situation and ask what they can do for you. Chances are, there are specific programs already established by these companies designed specifically to help you out. All you need to do is ask.