5 On Your Side

Struggling with bills? 5 On Your Side shares advice

So many businesses shut down, so many people laid off and now or soon to be, collecting unemployment.

Posted Updated

By
Monica Laliberte
, Executive producer/consumer reporter

So many businesses shut down, so many people laid off and now or soon to be, collecting unemployment.

How do you make ends meet?

"What went through my mind when I got laid off was like, how am I supposed to pay my electricity bill? How am I supposed to pay my rent? While also thinking about, how am I gonna set food on the table," said Manuela Martinez.

Prioritize which bills get paid, and which don't.

She immediately took steps that can help.

"I reached out to some of my credit card companies and requested them to stop interest rates," Martinez said. "They actually took ownership to say listen you don't have to pay anything for the next three months, some of them two months."

Experts say it's important to get a handle on how much cash is coming in and how much needs to go out.

Prioritize which bills get paid, and which don't.

"Normally, you might focus on paying down your highest-interest rate debts first, but these aren't normal times," says Scott Medintz with Consumer Reports. "You may have to focus instead on essentials, such as rent, utilities and pharmacy bills."

Many banks are deferring credit card payments and waiving fees for a period of time.

And while the CARES Act may offer relief from mortgage payments, know that it doesn't mean the mortgage bill can simply be ignored.

"The law doesn't kick in automatically, you have to contact your servicer," said Medintz. "It doesn't say how you'll be asked to pay up afterwards. Your servicer should contact you about a month before the time is up to offer you a realistic repayment plan."

Keep in mind, the law applies only to federally backed mortgages.

To find out if its an option, contact mortgage servicers.

The most important thing to do if concerned about missing a payment to any creditor, is to reach out with questions before you can't pay your bill. That will give you time to consider all of your options.

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