navigating financial uncertainty...take a personal inventory of finances 2. be realistic 3. do...
TRANSCRIPT
Navigating Financial Uncertainty
Majel Hein, CCUFC, CFEI
Financial Literacy Counselor, MCU Foundation
Ashley Lacenski
Community Development Director, Couleecap Inc.
Maintaining/Regaining Control During COVID-19
Where to Start
• Income decreases and bills keep coming
• Your financial position is about to change
1. Don’t ignore your situation (coping)
2. Accept that things have to be different
3. Seek help from people/resources
you can trust (reaching out!)
1. Take a personal inventory of finances
2. Be realistic
3. DO SOMETHING!
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What you can see you can
manage; what you ignore
manages you
3
Regain Control!
1. Determine your new income and expenses
– Spending Plan Handout
– Find Resources and understand CARES Act (coming
later)
2. Establish a new household budget
– How much income you can really count on
– How long will your income be reduced?
• Plan for the worst, hope for the best
– What your current fixed expenses are
– What your flexible expenses are
– Can anything be reduced? Try MyFridgeFood.com
– Make sure necessities are taken care of!
– Take inventory of your assets
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Control Continued…
1. Review all of your current obligations
2. Prioritize your creditors
– Assets you need to keep (home, auto,
etc..)
– Bills that have to be paid (cell phone, car
insurance, etc.)
3. Talk to your creditors – preferably
before you get behind
– So many programs out there right now to
help with payment relief!
– Don’t promise more than you can pay but
show good faith to your creditors by
making payments.
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Resources and CARES Act
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Unemployment- the Basics
• Extends UI benefits by 13 weeks
– Most states provide 26 weeks
• Provides and additional $600/week for up to 4 months!
– Weekly benefit is state PLUS additional $600
– Yes, some people will make more on UI benefits than they did
employed
• Individuals that are NOT eligible
– Able to work remotely
– Receiving paid sick or FMLA under Families First Act
– Salary has been reduced but regular work schedule remains
• Provides payment to: self- employed, contracted, or limited
work history impacted by COVID-19
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Economic Impact Payments
(Stimulus Checks)
• EIP’s are provided for individuals in the amount of $1,200 for single returns and $2,400 for joint returns, plus $500 for each child (under age 17 and qualifying for the child credit).
• To get full credit household incomes limits are (5% reduction after):– $75,000 for a single return;
– $150,000 for a joint return;
– $112,500 for a head of household return.
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EIP Continued…
• The credits would be fully phased out for income higher
than the following amounts: – $99,000 for a single person with no qualifying child.
– $198,000 for a couple filing a joint return with no qualifying children.
– $218,000 for a couple filing a joint return with two qualifying children.
– $146,500 for a single parent with one qualifying child.
• For limitation purposes, AGI is based on the 2019 tax
return, if filed. If not, then AGI on the 2018 return would
be the limit.
• Did you file 2018/19 returns with no account information-
enter is here
• If no return has been filed, they will use SS information.
– For more information go here
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How to use EIP
1. Start with Basics– Medication, food, utilities, housing
2. Emergency Savings– Set aside as much as you can and knowing
it's available if you need it can provide you with peace of mind.
3. Housing Costs– Even if these payments are suspended,
they will come due and a roof over your head is most important!
4. Auto/Lease/Secured Debt Payments
5. Credit Cards/Unsecured Debt payments
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Housing
• note: cannot give legal advice- you can visit legal action for more detailed information
• WI 60 day eviction ban– 3/27/2020 through 5/26/2020
– Does NOT suspend rent payments
• Federal Housing Moratorium (federally impacted property/mortgages)
• Rentals– 3/27/2020 through 7/25/2020 (120 days)
– After 120 days landlord may issue notice to vacate- not required to give 30 day notice
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Housing- Continued
• Mortgage Deferrals/Forbearance
– Lender or loan servicer may not foreclose on you for 60 days
after March 18, 2020
– You have a right to request a forbearance for up to 180 days.
You also have the right to request one extension for another up
to 180 days. You must contact your loan servicer to request
this forbearance.
• BE careful of the option you accept!!
– If you don’t have a federally backed mortgage, you still may
have relief options through your mortgage servicer
– More specific questions for mortgage relief can be found here,
on the CFPB website.
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Student Loans/Other
• All FEDERAL student loan
payments will automatically stop
from March 13th, 2020 through
September 30,2020. The loans will
also drop to 0%. Learn more here.
– Private loans do not qualify, the
member will need to contact that lender
specifically for options.
• Small Business Owners can find
more information here
– Couleecap resources
• Concerned about your retirement?
There are some great tips here
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Necessities/Mental Health
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• FREE national non-profit resource database/mental health line
• Call 2-1-1 or visit http://211.org/ and enter your zip code
• La Crosse local https://www.greatrivers211.org/gr211/
• Pandemic EBT (free or reduced lunch families)
• Employers EAP program
• National suicide prevention hotlines are 800.273.8255 or 800.784.2433. The Crisis Text Line is 741-741.
• NAMI warmline 1-800-950-NAMI
• Understanding how this impacts our youth
Emergency Funds/Loans
• Emergency Financial Assistance Funds are popping up
all over
– Most local is Couleecap that serves: La Crosse, Monroe,
Vernon, and Crawford Counties
– 2-1-1 has more information on additional funds in your area
• Emergency Relief Loans
– Financials are starting to offer emergency relief loans to help fill
the gap
– Examples:
• Altra FCU is offering members small unsecured loans with 0% and
no payments for 4 months
• Marine Credit Union is offering members access to small
unsecured loans with 0% and no payment for 6 months
• Ask your financial!
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Non Financial Tips
• Control what you can
control
• Take time for yourself and
your family
• Finds ways to stay
connected with your
community and loved ones
• Stay safe and healthy!
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