Restoring Financial Health After COVID-19 Getting Back On Track

America’s response to the coronavirus pandemic has revealed truthfulness. So many rules and regulations, that we were told were impossible, were a matter-of-fact all along. In 2011, when activists demanded debt cancellation for student loans and medical debt, they were laughed at. Activists continued to push and have been repeatedly told their demands were unrealistic. Now, we see the rules we have lived under can be broken.

Rental evictions were avoidable, the homeless could’ve been sheltered in government owned buildings, utilities didn’t need to be turned off for people who were behind, paid sick leave could be made available to all workers, paying your mortgage late didn’t need to lead to foreclosure and creditors could have been much more flexible. President Donald Trump has already put a freeze on interest for federal student loans, while New York Governor Andrew Cuomo has paused all medical and student debt owed to New York State. Talks are being held that will involve the possibility of suspending collection even canceling student loans as a larger economic stimulus package.

If you have been financially affected as a result of COVID-19, contact each of your creditors and let them know. Be descriptive about how coronavirus has impacted your ability to make payments and inquire about the different options that are available for instant relief.
Unfortunately, we are finding that not all institutions are adapting to the new form of flexibility. The Consumer Complaint Database of the Consumer Financial Protection Bureau (CFPB) has its eyes wide open looking for problems in the financial marketplace.

As might be expected, the effects of the economic crisis created by the COVID-19 crisis are beginning to show up in consumer complaints to the agency. Since around the time the COVID-19 pandemic began, consumers have submitted more than 5,000 complaints about debt collection practices.
COVID-19 is highly stressful in many ways, with health concerns, apprehension about taking care of loved ones, lost jobs, reduced income, the unknown, and the stress from home. Harassment from debt collectors is the last thing Americans need to deal with. Yet, according to the reports, that’s just what is happening.
Yet, since the crisis began, the CFPB has chosen not to actively get involved, on both debt, collections and other areas of concern to consumers.
The need for action is urgent. A Forbes article warns that debt collectors could be readying to jump in and garnish the stimulus checks that we received. The Association of Credit and Collection Professionals is making a push to ensure they can keep on collecting throughout the crisis.

What Will Be After Forbearance & Payments That Were Put On Temporary Hold?

Forbearance is temporary postponement of mortgage payments granted by the lender or creditor in lieu of a foreclosure. Many creditors allowed you to hold off on paying bills right now.
At the end of the hold off period, all of those unpaid payments are due. And while you may have heard that these payments can simply be tacked on to the end of your loan, there’s no one-size-fits-all solution. Deferring payments may be possible, but it’s not that simple. There is still a lot of confusion about what exactly that help looks like and most importantly, what happens afterwards, when the payments are due in one lump sum?
I predict that structuring a payment plan will be even more difficult than the big crash of 2008. Restructuring loans will most likely require completing a confusing application proving proof that you were financially affected by the virus but you now have the means to make a newly restructured payment (if approved) which will likely result in a higher monthly payment. So, what can you do?

Competency & Trust

We have taken a proactive approach exploring every option available. We begin by requesting in writing forgiveness of payments that were put on hold and, in some cases, successful in full forgiveness of the entire debt! We know who to call and how to submit a proposal. Our staff will assist in finding the best solution for your situation.
Angels of Debt is a family owned and operated business, with over fifteen years of experience in servicing the Jewish communities throughout the United States. Having successfully helped well over 30,000 clients settle credit card debt, lines of credit, loans of all types, taxes, mortgages and any other debt conceivable both personal and business. We complete the job by removing negative items from the credit file. In addition, we help you build your credit score better than it was before. Angels of Debt understands financial crisis and how to solve them. We pride ourselves in being the pioneers and number one in the industry.

Before calling us, make a list of your monthly bills: rent/mortgage, car payment, utilities, student loans, medical bills, and anything else. Factor in how much you need for food, medicine, and other necessities.
We listen to each and every client with an open heart offering sincere and logical advice. Our motto is “It’s not just business, its personal.” For every one client that hires us we give free advice to ten! Like any other trade or industry, the more service rendered or products sold the more experience you gain. Don’t waste time or money hiring someone with very little experience. My father (may he rest in peace) always said “You don’t get what you don’t pay for.” For help with your financial burdens call Angels of Debt at 718 766-5193