A question you might be experiencing these last few months is how to make sure to pay your bills in a way that aligns with what's most important to you. Which monthly expenses do you want to choose to pay first, which can save you money and which could be managed differently?
These are questions that many people are facing, especially those who have lost income or are motivated to review their expenses to better their situation.
To understand how to pay your bills by priority, start with reviewing any changes in your financial life. An unexpected change to income, for instance, can feel overwhelming and make keeping up with your current expenses a challenge. This time can be an opportunity to realign your expenses with your values.
If there have been changes in total household income, perhaps a family member is furloughed or laid off, the monthly outflow of expenses will be impacted, and having a plan will be important.
Planning in a Time of Crisis
The coronavirus pandemic has prompted many companies and lenders to extend various relief options, so communication is key to learn more about what is possible.
If you have a federally backed mortgage, for example, the CARES act says lenders must grant 180 days of forbearance - which means lenders give you a pause in your mortgage payment schedule for 180 days. Many non-federally backed mortgage issuers are providing similar options.
Other crisis-related regulations apply to debt, offering you added options for relief.
While the details of these options are important to understand, it is helpful to set a plan for your highest financial priorities and how you will pay your bills.
We have regular conversations about these issues with the people who contact us, and we have a true understanding of the concerns and uncertainty people might be experiencing, especially during this time.
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