The coronavirus pandemic has taken a heavy financial toll on many families. With all that is going on, bills still need to be paid, groceries purchased, and basic needs met. Many individuals and families may also experience changes to employment that can affect household income.
The Hawaii State Federal Credit Union offers its members financial resources and assistance programs, including an emergency assistance loan. In light of COVID-19, Hawaii State FCU is also allowing members to defer their loan payments and make early withdrawals without penalty.
Click here to learn more about Hawaii State FCU's financial assistance options, and read on for tips to managing your money and avoiding financial pitfalls during these challenging times.
Reach out to your lenders as soon as possible
It’s important to contact your lenders and loan servicers if you are experiencing financial hardship and tell them about your situation. In some cases, they may be able to help you by offering solutions such as loan deferments, reduced interest rates or interest-only payments.
Create a budget
It’s crucial to get a snapshot of where your money is currently allocated and understand how any changes in income may affect how you pay your bills. Maintaining a budget will help you identify areas where you might be able to cut down on unnecessary expenditures or reallocate funds. For example, money you used to set aside for going out could be reallocated to pay for home expenses, such as groceries or the internet.
Check your credit report
You can get a free credit report once a year from all three credit reporting bureaus—Equifax, Experian, and Transunion—by visiting www.annualcreditreport.com. Check your reports carefully for errors. Now is a good time to file disputes to get information corrected. But be careful: Many other companies online offer “free” credit reports that come with a cost.
Be cautious of potential scams promising financial assistance
Especially during times of financial hardship, scammers will attempt to take advantage of people seeking financial assistance. They often use communication methods such as email, phone calls, and websites to entice people into providing personal financial information. Remember that financial institutions, including Hawaii State FCU, will never contact you by email, text, telephone, mail, or other type of correspondence and request your PIN, passwords, usernames, or other types of access codes.
If you’re unsure about a company’s promises or concerned that you are being contacted by a scammer, contact the Federal Trade Commission or visit www.consumer.ftc.gov for more information.
Seek expert advice before making hasty financial decisions
Maybe a friend told you your money is safer at home than in your bank account. Or you heard from a relative that they’ve just sold all of their stocks. Before you follow suit, it’s always good to do research so you can make informed financial decisions instead of acting on impulse. Remember that federally insured financial institutions, like Hawaii State FCU, offer a much safer place to keep your money than under your mattress. And stock markets can change greatly over time. It’s crucial for you to seek advice from an expert before making significant financial moves.
Remain as flexible as possible
Although we are all hopeful that everything will go back to normal soon, we may be looking at our new normal at least for the next several months. Many businesses will need some time to regroup and reassess their operations moving forward. Until then, it’s best to stay as flexible as possible so you’re able to tackle any challenges.