As the world continues to cope with the after-effects of the Covid-19 pandemic, governments at the federal and state levels offer relief and resources to Americans affected by the crisis.
In addition, many businesses and financial institutions have stepped up to provide some relief to people who have concerns about their financial security.
Many Americans are currently unemployed, leading to an increasing reliance on credit as household paychecks shrink. The burden of debt is heavier than ever before. Credit card companies have come up with credit card and debt relief programs for those affected by Covid-19.
Credit Relief Programs For Covid-19
Credit cards are a convenient source of funds, serving as lifelines for basic expenses for the currently unemployed. However, if you fail to make payments on time, credit card debt piles up fast. The good news is many companies are willing to work with customers the pandemic has impacted.
There are several types of credit relief programs for Covid-19, including:
Reducing Interest Rates
When you borrow money from a financial institution using a credit card, an interest rate is applied to the debt. Credit card companies can temporarily lower this interest rate during a period of hardship if you ask for it.
Deferral/Lowering Of Monthly Minimum Payments
Customers can reduce or altogether skip monthly minimum payments for a limited time. This service, called emergency forbearance, gets made up for when the agreed-upon term ends. These payments do not have to be immediate, but you will have to resume monthly payments when forbearance ends.
Refunded/Waived Late Fees
Usually, when you miss a payment, you will get charged late fees. In light of the Covid-19 pandemic, credit companies are waiving or, in some cases refunding these late fees. To access these credit relief programs for Covid-19, customers should request financial aid, citing the pandemic as a reason.
How To Request For Aid From Credit Card Companies
Now that you know the types of relief available, you may be wondering how to request aid from credit card companies.
Follow these steps to access credit relief programs:
- Inform The Company That The Pandemic Has Affected You
The first step is telling the company that the Covid-19 pandemic has affected you. You should have documentation on hand to provide specific details on your financial situation.
- Ask About Available Relief Packages
Understanding their packages, the terms and the options you have is essential to recognize what you're getting into. Make queries on fees, interest rates, penalties and any other details about which you’re unsure.
- Obtain Written Copies Of Agreements
When you settle on one of the credit relief programs, you should get a copy of the agreement in writing. Be sure you have understood the terms and conditions before agreeing to anything. If you notice inaccuracies or errors in your financial statements, a written agreement will help you dispute them.
Once you know how to request aid from credit card companies, you can begin planning your finances during the Covid-19 pandemic.
Access Credit Relief Programs Today
Millions of people around the world are battling financial hardship due to Covid-19. Fortunately, credit card companies have come up with credit relief programs to help customers mitigate the adverse effects of the pandemic.
These programs are helpful for the unemployed or those in a financial pinch, allowing them access to funds to cater for their basic needs. In these trying times, nobody should get denied the aid they need to care for themselves and their loved ones.
If the Covid-19 pandemic has thrown your financial affairs into disarray, you too can access credit relief programs today to help you get the financing you need.