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What to Do About Debt If You’re Laid Off During the Coronavirus Pandemic

The novel coronavirus known as COVID-19 has turned the world upside down. With America’s cases reaching levels higher than any other in the world, we’re seeing efforts to contain the virus and mitigate effects on human lives. The American economy is taking a hit too, as many businesses are forced to close and relieve employees. But outstanding debt doesn’t just go away. So you may be scrambling trying to figure out what to do about debt if you’re laid off.

Pandemic Brings New Meaning To Compounding

As if you weren’t already beginning to feel the weight of debt silently beginning to overwhelm you, uncertainty about the American economy is just as crushing. You may be one of the 6.6 million Americans[1] who are jobless and filed for unemployment as a result of the coronavirus pandemic preventing them from continuing to work and collect paychecks.

As public health orders mandated the shutdown of most businesses except those deemed essential across the country, many people are wondering how they’re going to pay their bills. Of course, if you already had debt that you were struggling with, you’re even more concerned with what to do. Even if you are in an essential position, this virus changes the actions of public health officials regularly. You may wonder what you’re going to do about debt if you’re laid off.

Different Circumstances Lead To Different Budgets

If you’ve been let go from your job, you’re not alone. And even if you still have your job, you may feel uneasy about how long you’ll keep it, and in that, you’re still not alone. The most important thing to do at a time like this is to remain as calm as you can. The stress of how to put food on the table, much less paying the rest of the bills, can cloud your judgment and even weaken your immune system.[2]

Keeping calm as you make decisions will also help you look honestly at your financial situation. If you were already struggling with debt, wondering what to do about debt if you’re laid off seems even heavier a burden. Having a solid picture of your financial situation may allow you to look for the best guidance and direction. Most likely, you’re going to need to tighten up your budget even more than you have already tried. This can bring additional stress on you, so be sure to look for options to help reduce the impact of income loss.

What Options Are Available If You’re No Longer Working?

If your job and income are affected by the coronavirus pandemic, one of the first places you’ll want to turn is to the Federal Government’s Benefits page.[3] This page has several links about the unemployment benefits you have at the federal level, as well as how you can file for unemployment insurance/benefits. The state you live in may have additional unemployment benefits/insurances and requirements. You should check your state government’s website to see how that assistance applies to you.

On March 27, 2020, the president signed the Coronavirus Aid, Relief and Economic Security Act into law.[4] This law is a stimulus package that is meant to address the widespread job loss America faces. There are many facets of the bill that may help you deal with debt if you’re laid off. The law is one of several that addresses the impact of the coronavirus and may offer some financial relief in the form of stimulus checks, depending on your 2018/2019 income level.[5]

If you’re already struggling with overwhelming debt, you may wonder what to do with that money and whether you should use it on your existing debt. At times like this, it’s important that you seek debt management help from accredited businesses like Umbrella Debt Relief.

Umbrella Debt Gives Guidance About Debt If You’re Laid Off

When something like massive job cuts and layoffs occur, those who are already overwhelmed with debt feel the impact so much more. For you, this period of uncertainty feels like it weighs heavy because you don’t know how you’re going to pay your rent, much less your credit card debt. While many states are offering help for shelter and utilities[6], you also have options for dealing with debt if you’re laid off.

Umbrella Debt Relief will explain your debt relief options for unsecured debts that can help you get through these uncertain times. Our experienced staff is skilled in helping you find debt relief options that work best for you. We want to help you regain some financial control so you can breathe more easily during this difficult time.

The last thing you want to be worrying about is creditors calling and asking you for the money you simply don’t have. Let us help you find a debt settlement program that works best with your financial situation. With options like debt settlement, we may help you reduce the overall amount you owe to creditors. This means you could have less debt hanging over your head. Being laid off doesn’t automatically mean you have to resort to things like filing for bankruptcy; we want to work with you to give you viable solutions that take the stress and burden off your plate.

Though these days may be full of financial unknowns, at Umbrella Debt Relief, we know we can make a difference in your financial situation. Together, we’ll make it through this time. Contact us today so we can help.

Sources:

[1] https://www.bbc.com/news/business-52137727

[2] https://www.simplypsychology.org/stress-immune.html

[3] https://www.benefits.gov/help/faq/Coronavirus-resources

[4] https://www.congress.gov/bill/116th-congress/house-bill/748

[5] https://www.cnbc.com/2020/04/01/whos-eligible-for-covid-19-stimulus-checks-your-questions-answered.html

[6] https://governor.maryland.gov/2020/03/16/governor-hogan-orders-closure-of-bars-and-restaurants-announces-unprecedented-public-health-surge-to-combat-covid-19-crisis/

Umbrella Debt Relief 1-844-389-6745
200 W. Palmetto Park Road Suite 200 Boca Raton FL 33432