PHILADELPHIA (KYW Newsradio) — So you've got your stimulus check, unless you're one of the millions who are still waiting on it. Either way, how can you make the money stretch if you've been laid off, or fear a layoff?
"When you have a financial hardship, the first thing to do is to go back to the basics," advised CBS Business Analyst Jill Schlesinger.
Schlesinger said the first thing everyone can do to relieve some anxiety during challenging economic times is scale back expenses.
"And that means delineating every single bill that you have and prioritizing your bills," she explained. "That means food, shelter, utilities, internet service provider, insurance. And what I think is most important is food. That's number one and second is shelter. Everything else is probably negotiable. Having that list can really provide you with a sense of control."
Michael Howard of Morgan Stanley says without even realizing it, you're probably already saving money from staying at home. So, prioritize putting that money aside.
"If you can, save the stimulus check if you can afford it. Everyone has different obligations they must take care of. You can invest some of it. You're saving from daily expenses without even knowing it. Try to save wherever you can," said Howard.
Schlesinger also recommended keeping a cash cushion, putting away as much as possible from tax refunds as well as the stimulus check.
There are several initiatives already in place to stop people from being evicted. Residents in Philadelphia are not to be evicted at this time, and there's a tenant helpline if you need it. There is also assistance available to help people in danger of losing their homes.
"The Federal Housing Finance Agency has actually instructed mortgage servicers to allow borrowers who've got mortgages by Fannie Mae or Freddie Mac to delay payments," Schlesinger shared. "So this is a forbearance program that would allow for mortgage payments to be suspended for up to 12 months due to hardship caused by coronavirus."
You're also likely to have a better chance at negotiating during this time. So call your credit card company, call your collectors and let them know your situation. If your bill is too much right now, express that.
"There are going to be a lot of people who feel like they're drowning but you may not be drowning. You may have a lifeline here but it does require you to do a little bit of work," said Schlesinger.
Schlesinger also advised people not to go dark or turn away from the problem.
"So much of the time, our instinct is to hide under a pillow. What we want people to know is that all of these lenders have been given instructions from the FDIC. They've been told that all the lenders had to show some compassion. And now they have cover from the federal government," she said.
For specific questions about your finances, you can utilize free resources such as your bank or tax preparer. You can also email questions to Schlesinger.
