(WTNH) — If 2020 was a tough year for your bank account, you’re not alone. Many families had to make difficult decisions to support their families and are now hoping to get things back in order in the new year.
News 8 is stretching your dollar with what you have to do to start.
It may be a new year but the impact of 2020 is far from over as families had to make some tough decisions to put food on the table.
“The CDC allowed people to stay in their homes, but it did not relieve them of their obligation to pay their rent,” explained Brent Schondelmeyer, Local Investment Commission.
The new year means millions of people who have taken advantage of months of rent relief will soon have to pay up, and for many, the only answer will be to take on more debt.
“Not surprisingly, people will put more debt on credit card, fully understanding they won’t be able to pay it off, but it buys them time, in some sense, time is important.”
Experts recommend before you charge up a credit card, call your landlord and other creditors and utilities to find out who has a hardship payment plan. You may find relief somewhere.
Next, check interest rates on your current credit cards and talk to a financial expert if you can first come up with a plan you can actually manage in the future.
“Time will bring us a vaccine but it won’t inoculate the consequences of burdensome debt, it’ll be financially devastating.”
Many families will be dealing with the residual effects of 2020 well into this year.
You should not put too much pressure on yourself to have things fixed right away. The important thing is to have a plan in place and put it into motion to where you’ll eventually see relief in the future.