Need Help Paying Bills?
10 Ways To Save Money During Difficult Times.
If you need help paying bills, and are struggling to keep a roof over your head and food on the table during these difficult times, there is help available. Here are 10 ideas to help you with some of the issues you might be facing.
1. Federal assistance through the Cares Act. The stimulus package was passed March 27, 2020, to assist individuals and businesses survive the COVID-19 pandemic. Among other things, the package includes:
Expanded eligibility, duration, and amount of unemployment benefits
Eviction and foreclosure protection until mid-May and reduced or postponed mortgage payments until the end of 2020 for homeowners with federally backed mortgages
Eviction protection until mid-July for renters living in federally assisted multi-unit buildings
Suspension of federal student loan payments until September 30, 2020
You can read the White House fact sheet on the bill at whitehouse.gov.
2. Help with phone service. If you can’t pay your phone bill, you may be able to get help from Lifeline. This Federal Communications Commission (FCC) program helps needy individuals and families get cell phone and landline service. You may even be able to get a free phone.
To qualify for the program, your income must be less than 135% of the federal poverty limit. Individuals who receive Medicaid, food stamps (SNAP), public housing assistance (Section 8), or Head Start may qualify. If you receive a federal veteran’s pension or live on tribal lands and qualify for some tribal programs, you may qualify for Lifeline.
You have to apply through a local company participating in the program. You can find companies in your area at USAC.org.
3. Help with utility bills. Most utility companies are working with customers struggling to pay their bills during these difficult times. If you can’t pay your energy bill, you may be able to work out a payment plan. You can also try the Low Income Home Energy Assistance Program (LIHEAP).
It assists with heating and cooling bills and offers emergency service in a crisis, like a shutoff. The program does not assist with water, sewer, cable, or internet bills.
You may be able to qualify if you already receive benefits like SNAP, SSI, TANF (welfare), or some needs-tested veterans’ benefits. LIHEAP has limited funds. Once it runs out, it is unable to help those who qualify until the federal government makes more funding available.
To get more information and to apply for the program, contact your local LIHEAP office.
4. Help with medical bills. Medicaid and the Children’s Health Insurance Program (CHIP) assist families that can’t afford health insurance or don’t get it through their employers. To find out how to qualify and apply, go to USA.gov.
If you can’t get insurance through your employer, are self-employed, or just prefer to buy health insurance yourself, you can get information about health, vision, and dental plans by going to the Health Insurance Marketplace. Healthcare.gov helps with insurance options, care comparisons, and preventive services.
5. Help with prescription drugs. If you can’t afford your prescriptions, you should contact local health centersand state human services agencies. They assist individuals with limited access to healthcare and those in crisis.
You should also find out if you qualify for Medicaid and CHIP. If you are 65 or older and eligible for Medicare, you can get prescription drug coverage with Medicare Part D.
6. Temporary Assistance for Needy Families (TANF). If you are a low-income parent or primary caregiver of a minor child, you may be eligible to receive TANF benefits. These benefits include housing, food, child care, home energy, and job training.
Each state has its own eligibility requirements. You must apply to your local social services agencyin the state where you live.
7. Help with food. If you need immediate help putting food on the table, call the USDA National Hunger Hotline: 866-3-HUNGRY (866-346-6479) for English and 877-8-HAMBRE (877-842-6273) for Spanish. Their hours are Monday-Friday from 7 in the morning until 10 in the evening.
You can also contact local churches, non-profit organizations, and food banks.
Because of the coronavirus, government food programs are relaxing some of their rules for the duration of the crisis:
Food stamps recipients may get supplemental funding. Apply for SNAP through your state agency.
Schools and other organizations are providing free meals for children. Contact your child’s school for more information.
Enrolling in food programs may be done virtually, including programs designed for seniors, families, pregnant women, and individuals with disabilities.
Apply for WIC at your local WIC agency.
Seniors can get information about nutrition programs specifically for them at the Senior Farmer’s Market Nutrition Programwebsite and the Commodity Supplemental Food Programwebsite.
8. Help with debt. If your credit card bills are coming due and you need help paying bills, call the company and ask them to extend your due date. Ask about lowering your interest rate. Contact a non-profit debt management organization like the National Foundation For Consumer Credit (NFCC). They will help you consolidate your debt, lower interest rates, and stop creditors from calling you.
If you can’t make your house payment, contact your lender. The federal government has directed mortgage lenders to suspend or reduce mortgage payments for up to a year for borrowers who have lost income due to the pandemic.
If you’re a renter living in a federally assisted apartment complex, your landlord cannot evict you for non-payment of rent or charge you late fees until July 25, 2020. Some cities and states have mandated their own moratoriums on evictions because of COVID-19. You can find what your state is doing here.
9. Help with legal issues. There are non-profit law firms specializing in assisting very low-income families and seniors. You can get help with eviction and foreclosure issues, utility service disconnections, and more. You can call the federal office of Legal Services Corporation at 202-295-1500 to get information about services in your local area or visit their website at lsc.gov.
10. Help with extra income. Finding ways to make extra money these days can be difficult, and not everybody qualifies for government programs. If you have skills and equipment that allow you to work from home, you may be able to find some part time employment from businesses that can’t afford full-time workers right now, but still need help in certain areas.
Becoming a personal shopper is another way to make some extra income. If you take precautions, you might grocery shop or run errands for seniors or others who have health conditions that make it dangerous for them to be out during this time.
What to Avoid
A payday cash loan. These loans are appealing because the companies don’t care about your credit and will hand you cash right away. The problem comes with the repayment. According to a CNBC 2018 report, the national average percentage rate is almost 400%. There are states where you can be charged 700%.
A credit card cash advance. 15% is the average national percentage rate on a credit card. The average percentage rate on a cash advance is 21%. You don’t get a grace period for a cash advance. Unlike paying for something with the card, interest on a cash advance starts accruing as soon as you take out the cash.
