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Protecting Your Finances During The Coronavirus Pandemic

Ephesians 5:15 Therefore be careful how you walk, not as unwise men but as wise...

Money is hard to come by. We look for ways to increase or at least save our hard earned dollars. Everyone’s trying to survive. Not just you as an individual or consumer but so are companies.

Loans and plans are offered and though they come across as wanting to help you (“We stand ready to work with those experiencing financial difficulty”), some see an opportunity to take advantage of your necessity during this coronavirus pandemic. Be careful how you walk, be careful in money management.

Beware Financial Relief Programs

Companies’ offering Forbearance or Deferred Payment – Forbearance is an agreement with a lender that allows you to reduce or delay (defer) payments for a set time. Some offer a plan where you can elect to put your payments on the back end of your total loan. These are far and few.

During this Covid -19 crisis most lenders are offering a 3-6 months deferment plan. This type of agreement allows a borrower to pause or reduce payments for a period of time. In return, the borrower agrees to resume payments when the time is up and pay the additional deferred amount, including principal and interest, to bring the account into good standing.

You may feel like what an opportunity but you may be lured into a situation that may come back to haunt you later. Even those who want to game the system, thinking they can skip obligation and stash payments for a few months without consequence, take heed.

The Lender Still Expects Payment at Some Point and Usually Require a Lump Sum at the Deferment’s End.

For instance, you are told that you may be eligible to delay making your monthly mortgage payments for a temporary period, during which:

You won’t incur late fees.

Foreclosure and other legal proceedings will be suspended.

Wow! This sounds good but many if not all mortgage companies and lenders will require borrowers to pay in full at the end of the deferred period.

Now when it comes to pricing, it’s not always transparent what you are agreeing to and if you don’t know the right questions they won’t volunteer information. Information that will definitely make you think twice about entering into this agreement.

You may be informed that interest still accrues, meaning accumulates or builds up, but what does that mean to you in dollars and cents?

Perhaps this can help. For example, if you have a $1500 monthly mortgage and your deferred payment agreement is for 3 months... say, May – July. At the end of the 3 months, which is August in this example, you will have to resume your $1500 monthly payment, PLUS the 3 deferred months equaling $4,500 ($1,500 x 3 months). Are you following me?

AND the accumulated interest rate - which depending on the interest rate and principle could all total to be $10,000 to be paid in a lump sum.

Then they will say, “If you have trouble catching up at the end of this temporary relief period, additional assistance may be available. You can work with your servicer to resume making a mortgage payment. Or if you need additional assistance, you can work with your servicer on other foreclosure prevention options to keep your home.”

Lenders realize that if borrowers can't pay one month now, it is hard to see how they can pay four payments at once later.

Beware of Scams

During times of crisis, there is an increased risk of scams and fraud. Protect yourself by asking questions, reading the materials provided to you, and avoiding any solicitations requiring up-front cash payments.

Hello everyone! All of us are watching the news, reading the headlines and asking “what does the future hold?”

The uncertainty coronavirus brings is what makes things so hard. How will we and our loved ones be affected or how bad things might get makes it too easy to spiral out and become overwhelmed with fear and anxiety. I’m encouraged by one old song that says.

Many things about tomorrow, I don't seem to understand
But I know who holds tomorrow, and I know who holds my hand.

You know where knowledge begins? The fear of the Lord is the beginning of wisdom. These are times that we need the Lord to help us discern what information is safe to accept. With various opinions and the fluidity of available information, it’s vital to stay accurately informed. When you share accurate information about COVID-19 it makes people feel less stressed.

Well, let’s get some accurate information out there:

The virus spreads primarily through contact with an infected person when they cough or sneeze. It also spreads when a person touches an object that has the virus on it, and then touches their eyes, nose, or mouth.

The disease causes respiratory illness (like the flu) but the primary symptoms are:

Fever - Cough - Fatigue and in more severe cases, difficulty breathing.

A wise man foresees the evil...when you are equipped with knowledge and prepared for situations it’s easier to protect yourself and your family from becoming a victim.

These are some things you can do to be properly equipped and protect yourself from the coronavirus.

1) Wash your hands frequently. Wash your hands regularly for 20 seconds, with soap and water or alcohol-based hand rub.

2) Avoid touching your face, eyes, nose, or mouth.

3) Cover your nose and mouth with a disposable tissue or flexed elbow when you cough or sneeze. Never sneeze in your hands.

4) Practice social distancing, (right now, that’s considered  6 ft. away from another individual.)  

5) Though there is controversy on whether wearing a mask is helpful or not, I say wear a mask...it won’t hurt.

6) Stay home. Leave your home only for essential activities or for essential operations. Self-isolate from others in the household if you are experiencing the primary symptoms.

7) Be Humble. Pray. Seek. Turn.  If my people, which are called by my name, shall humble themselves, pray and seek my face and turn from their wicked ways, then I will hear from heaven, and will heal their land.

We certainly need to experience God’s healing. Take care of yourself, your friends, and your family.

Pastor Ricky Dukes
Church of God, Chicago