Common Wealth Charlotte – General Steps for Managing Your Finances During the COVID-19 Shutdowns

This guide was taken from our friends over at Common Wealth Charlotte. For more information on their services and organization, visit here.    General Steps for Managing Your Finances During the COVID-19 Shutdowns – March 19, 2020 First, remain calm: Mecklenburg County, the State of North Carolina and the U.S. Government are putting a number of programs in place to assist with financial hardships associated with the COVID-19 situation. Keep a level head, limit unnecessary purchases, don’t pursue any payday, auto-title or online installment loans or max your credit card, and follow the steps below for specific instances. You will eventually have to make those payments. It is unlikely any rent, mortgage, car, utilities, loan or credit card payments will be waived permanently. But there are some things already in place that may assist you in your current situation and give you time to breathe:

Mortgage:

The Supreme Court of the State of North Carolina and the U.S. Government has issued a delay of any new mortgage foreclosures until April 30 at the earliest. To the best of our knowledge, pending cases in the Mecklenburg County courts have also been put on hold. You will have to make arrangements, but you do not have to worry at the moment about mortgage foreclosure.   Q. What if I cannot make my mortgage payment?

1. Have the address and account number in hand.
2. Call your mortgage company. (The phone number should be on your last statement).
3. Explain the reasons for your hardship clearly and concisely.
4. Be specific about what remedy you are seeking. Some remedies are: a. A 3-, 2- or 1- month deferment b. An interest-only payment
5. Don’t promise to send more money than you can reasonably afford.
6. Ask for an email response explaining what steps have been agreed on to correct the issue.
7. Do not give debit access to your checking account for any reason.

Rent:

The Supreme Court of the State of North Carolina has issued a delay of any new eviction proceedings until April 13 at the earliest. To the best of our knowledge, pending cases in the Mecklenburg County courts have also been put on hold. You will have to make arrangements, but you do not have to worry at the moment about being evicted.   Q. What if I cannot pay my rent? A. Call your landlord and explain that you have been impacted by the COVID-19 shutdowns and cannot pay your rent. No one will be surprised, and your landlord will likely work with you. Car and Car Insurance Payments: To the best of our knowledge, there have been no governmental protections put in place to assist you with car or insurance payments.   Q. What if I cannot pay my car payment or car insurance?

1. Have address and account number in hand.
2. Call your finance AND insurance companies. (The phone number should be on your last statement). Explain the reasons for your hardship clearly and concisely.
3. Be specific about what remedy you are seeking. Some remedies are: a. A 3-, 2- or 1- month deferment b. An interest-only payment.
4. Don’t promise to send more money than you can reasonably afford.
5. Ask for an email response explaining what steps have been agreed on to correct the issue before you provide any money.
6. Do not give debit access to your checking account for any reason.

Credit Card:

To the best of our knowledge, there have been no governmental protections put in place to assist you with credit card payments.   Q. What if I cannot pay my credit card? A. Call your credit card company and explain that you have been impacted by the COVID-19 shutdowns and cannot make your payment. No one will be surprised, and your credit card company will likely waive your current payment. Worst case, do not make a payment at all for a month. Interest will accrue, and your credit report will take a slight hit. But it may be your best option.

Unemployment:

The State of North Carolina has made several changes to its filing process for unemployment. In short, if you have lost your job, been laid off or had significant reduction of hours, you should file a claim now.   Q. How do I file for unemployment insurance? A. The fastest and most efficient way to file a new claim is to file online at des.nc.gov. If you don’t have access to a computer, you may file over the phone by calling 888-737-0259. Federal Income Taxes: The Internal Revenue Service has moved the date income tax payments are due to July 15, 2020. But, you still have to file your taxes by April 15, 2020.   Q. What should I do about filing and paying my federal income taxes?

1. File your taxes by April 15, 2020. If you need more time to file, consider filing an extension.
2. If you owe taxes, do not send a payment. Instead, mark July 15, 2020 on your calendar. Your tax payment will be due then.
3. If you are due a refund, file as soon as possible, then text the word CWC to 474747 and request a counseling appointment to plan your refund. If you have student loans, make sure those loans are in deferment or in an income-based repayment plan.
4. Do not take out a Refund Anticipation Loan with your tax preparer. Wait for your refund to get the maximum amount. North Carolina State Income Taxes: To the best of our knowledge, there have been provisions made by the state of North Carolina to extend state income tax filing dates.

Q. What should I do about filing and paying my North Carolina income taxes?

1. File your taxes by April 15, 2020. If you need more time to file, consider filing an extension.
2. If you owe taxes, send a payment.
3. If you are due a refund, file as soon as possible, then text the word CWC to 474747 and request a counseling appointment to plan your refund.

Other Questions Not Covered:

If you have another question not covered here, please text the word “finances” to 474747 and a Common Wealth Charlotte financial advisor will follow up with you. Our volume of requests has been extreme. Please be patient, and we will contact you.