If you lost your job or faced pay-cuts as a result of COVID-19, you may be facing an uphill battle to catch up on bills now. And you’re not alone.
- At least 58 million workers have been unemployed at some point during the pandemic.
- 110 million Americans were carrying credit card debt before the shutdown and one in four have added more debt in the wake of COVID-19.
- As shutdowns began last March, 67 million people worried that if the pandemic continued for more than 3 months, they’d fall behind on their credit card bills.
While the economy is showing signs of recovery, slow reopening plans continue to drag on, making it more difficult for those trying to catch up.
It’s a situation that’s all too familiar to Laura and Jared. As a bar manager, Jared’s pay was cut immediately in mid-March when Florida shut down. By the end of April, he’d been let go completely. While Laura kept her job as a graphic designer, the ad agency where she works lost clients, so she was cut back to a 4-day workweek.
Within the span of two months, they lost 60% of their household income. It was more than their budget could take.
Forbearance and deferment didn’t help as much as they’d hoped
Thanks to the CARES Act, they qualified for a 180-day forbearance on their mortgage payments. That gave them some breathing room to get things figured out.
Payments were also suspended on some of their student loans, but unfortunately, it was only on their federal loans. Laura had taken out some private loans for design school and those weren’t covered by CARES. The loan servicer wouldn’t budge. They offered no deferment or forbearance.
Out of the six credit cards they had open, four had balances. Two of their credit card companies offered 60 days of deferment, but the other two expected to be paid.
“It was so frustrating because they knew our situation and they just didn’t care,” Laura says. “They wanted their money. But there just wasn’t anything we could do.”
The payments on those two credit cards, as well as Laura’s private student loans, fell behind quickly. Even worse, they were forced to make charges on the other four credit cards just to cover the rest of their bills and necessities. Their debt started piling up.
The stress was keeping Laura up at night
“I felt completely overwhelmed,” she says. “I would lay there at night worrying about when this bill or that bill was due. When our water heater broke, I just sat there and cried. That was another $1,500 that went on a credit card. I had no idea how we’d pay it all back.”
Laura picked up any freelance design work she could find, and Logan started driving for a food delivery service while he looked for a new job. But the extra cash wasn’t enough. They kept up with the minimum payments on the four credit cards that weren’t behind just so they could continue to pay for things. The other two and the student loans continued to fall further behind.
Logan found a new job, but his income wasn’t where it was before
In August, Logan finally found a new job, but the salary was less than what he was making before. They were also facing a mountain of credit card debt and two student loans in default.
“I’d never imagined being over $15,000 in credit card debt,” Laura says. “We’d always prided ourselves on being responsible and never getting overextended. So now that we were in a situation where we owed that much, we had no idea what we were going to do. It felt like we’d be paying off that debt for the rest of our lives.”
They tried researching debt relief options, but the number of options was almost as overwhelming as their debt.
“Some people tell you to consolidate, while others say you need to try to negotiate,” Laura explains. “Everyone tells you this solution or that one is the best option. And don’t get me started on student loans. There are a dozen programs that I found that would help with federal loans, but I couldn’t seem to find anything that would help with private loans.”
One phone call gave them clarity
A friend told Laura about a service that might be able to help—Debt.com. She said it was like a one-stop-shop for debt solutions. That they’d match her with the right relief options based on her situation.
“I was honestly expecting more of the same,” Laura admits, “but the free consultation was different. The representative asked me to explain my situation. He listened to everything I had to say, about our credit cards and my student loans. Then he explained all the options that were available to us. Once he answered all my questions, he recommended that I speak with a debt settlement company about our credit card debt and a student loan relief specialist about my loans.”
The representative immediately connected her with a top-rated debt settlement company. She enrolled in the program that day. The student loan relief specialist recommended refinancing her private loans. Debt.com then put her in contact with a lender that specializes in helping people get approved even with a bad credit score.
“With one phone call I got connected with all the solutions we needed to get our life back on track,” Laura says. “This service was a godsend. I can’t thank Debt.com enough for putting me in touch with the exact experts that I needed to talk to.”
Why Debt.com’s approach is unique
Debt.com isn’t like other debt relief providers because they don’t actually provide any solutions directly. Instead, they’ve created a referral network of top-rated financial services to help with every type of debt a consumer can have.
Debt.com is essentially like a financial matchmaker. They take time to understand your situation, then they match you with the best solution to fit your circumstances and goals.
“Debt relief isn’t one-size-fits-all,” explains Don Silvestri, president of Debt.com. “No solution is going to work in every situation. So, we take a different approach. We match people with the best solution—or solutions—based on their unique financial circumstances. And then we give them the tools they need so they can recover as quickly as possible.”
Debt.com has a network of over 100 top-rated financial service providers. They also have a panel of financial experts who answer consumer questions directly. Since 2013, they’ve helped over a million people solve challenges with credit card debt, taxes, student loans, and bad credit. They’ve also helped credit users find relief from over $4.4 billion in credit card debt.
“And we’re not just about helping people get out of the debt that they’re in now,” Silvestri says. “We have solutions that help consumers fix their credit and improve their score once they’re out of debt. Whether they need to build a budget or save money on prescriptions, we connect people with tools and products that help them live financially healthy lives.”
Debt.com has a free helpline to help you during this financial crisis.
During the pandemic, Debt.com has established a free helpline where consumers can talk to qualified experts about challenges that they’re facing in the wake of COVID-19. Over 200,000 consumers have called to get answers and guidance on how to get through this crisis and start recovering.
To get help or simply to get answers to your pandemic financial questions, call 800-849-DEBT (3328).
