With millions out of work, the COVID-19 pandemic is proving to be a stressful economic time.
Local credit unions say their phones have been ringing more often, with many members asking for advice to do at this uncertain time.
"While we’re all in the same storm we’re not all in the same boat," said Sara Kemperman, senior vice president of retail operations for Lake Michigan Credit Union said. "There is no shame in reaching out and asking for help. Now is the time where that’s what we do best."
Tim Kosak, vice president of consumer lending for Consumers Credit Union, said getting on track is all about taking the time to determine a payment strategy that is right for you.
"If your car payment isn’t due until late May, you have a couple weeks to really look at those options," he explained, warning people not to be hasty in their decisions.
Consumers Credit Union offers payment assistant plans like forbearance or the option to skip one payment.
"One of our options for members is a simple skip a payment, where they can skip a payment and it basically delays that payment until the end of the loan. For someone who knows they’re returning back to work, that can be an easy solution," Kosak explained. "We’ve had a couple of members where a forbearance is an excellent idea. They don’t know when they’re going to return back to work. If I do a forbearance for three months, my money is due at the end of the three months for all three payments."
Kemperman urged those in a pinch to contact their credit union directly via phone or email, saying the companies will work with clients to get them back on their feet.
"I can't stress enough how communication is key," she said.
Kemperman said people may also find some spare money looking into discounts being offered by their phone or insurance companies during the pandemic.
While she said she understands credit cards may be necessary at some point, she warns strongly against maxing out any cards or applying for more credit. Kosak agrees, suggesting people dip into their saving funds if they have them available.
"Rather than falling back on your credit history to borrow for a refrigerator that goes out your car payment, a repair that needs to be worked on, your financial savings account and health is going to automatically lead to a better credit report," he said.
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