What's going to happen to my:
🚨 It’s time to use that emergency fund
You’ve worked hard to save up 3 months of living expenses. Before you dip into it, review your budget and cut out any unnecessary items. Make it last!
☂️ No emergency fund?
It’s going to require some balance
- Educate yourself on your state’s unemployment benefit requirements here.
- Pick up a few side gigs. See what’s available in your area on Steady.
- Borrow — there is a right way and a wrong way to borrow money. We’re here to keep you in the right.
- If you have a credit card, keep your spending only to essential items and consult an Albert Genius on your debt repayment plan.
- Beware of high interest rate loans. Anything over 30% interest is usually NOT healthy.
- If you have a family member or friend that is willing to help, make sure to keep it all organized. Create a budget and discuss their optimal payback date.
Federal student debt
The current state of federal student loan relief due to COVID-19 effects is fluid.
As of 3/25/20 here is what we know.
🗂 You’re not accumulating interest.
All borrowers with federally held student loans will automatically have their interest rates set to 0% for a period of at least 60 days.
📑 You can request temporary forbearance
If you need help keeping your budget low during this time, you can suspend your federal student loan payments for at least two months. To request this forbearance, contact your loan servicer online or by phone.
👊 If you continue to pay, you could knock out some principal
The full amount of your federal student loan payment will be applied to the principal amount of your loan once all interest accrued prior to the president's March 13 announcement is paid.
Keep up to date on Federal Student Loan Relief news here.
Private student debt
A handful of private education lenders have been offering students extended payments and other types of assistance during the COVID-19 outbreak, though none have proactively reached out to borrowers to make them aware of those options.
Financial hardship assistance is offered on a case-by-case basis. As of 3/25/20, these are the private student loan lenders offering help.
This might be a great time to consider refinancing your student loan debt. Here is a list of current rates offered in the market. Text a Genius to talk it out.
Stay updated on pertinent Private Student Loan Relief news here.
Credit card debt
Making on time, minimum payments on your credit card is crucial to maintaining a healthy credit score. If it’s getting tough to handle, we have a few recommendations.
⚡️ Build a debt repayment plan with a Genius
If you are a Genius subscriber, text us to get one started. We forecast your debt-free date, build you a realistic budget and send you a customized debt plan.
💳 Can’t handle your current minimum payments?
These credit card companies are offering temporary assistance, if your provider is on the list, give them a call to discuss your specific situation.
⏰ Need a temporary solution?
If your credit is above 680, you may qualify for a balance transfer card. Text a Genius to find out more.
“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.” - Warren Buffett
Your investments should be for the long-term.
🤙 Don’t panic
When you look at an investment your first question should be, “What am I ultimately going to use this money for?” If that goal is still 3-50 years away, it’s usually not time to sell if it’s invested properly.
⛑ Review your risk tolerance
Every financial goal has a timeline and a risk tolerance. That’s what the experts are for! Text a Genius to talk through your risk tolerance.
🗣 Talk it out
Seeing a 20-30% loss on your investment is tough. Understanding the “why” behind it can help ease your anxiety. Talk to a Genius about your investment worries; we’re here to help!
Loans issued by your bank/credit union, such as secured/unsecured lines of credits, mortgages, auto loans, personal consolidation loans and other debt extended may be eligible to have its payment paused or skipped.
💸 If you are experiencing financial hardship
We recommend reaching out to your bank for help. Much of the aid is offered on a case-by-case basis, but a growing number of financial institutions have begun to waive fees or defer payments.
🏦 You may be eligible to refinance
Many of these loans are based off the Fed Funds Rate, which is now 0-0.25% (this means you may have seen your interest rate drop). We recommend reaching out to your bank for more information. If you can afford your payments as usual, this might be a great time to ramp up your payments and chip away at the principal.
Here is a running list of some of the banks that are offering financial aid to those affected by the pandemic. Check back for updates.
This is a rapidly developing situation.
If you are out of work or have lost other sources of income as a result of the COVID-19 outbreak, check here to see if your state, city or county has adopted or is considering prohibitions on evictions of residents affected by fallout of the coronavirus pandemic.