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Tag: Debt

Act Fast if You Cannot Pay Your Credit Cards

Posted on by mjsaxton@ksu.edu

Act right away and call your credit card company if you believe you are unable to pay the minimum payment on your credit card.  Many credit card companies may be willing to help if you’re facing a financial emergency. You do not need to be behind on your payments to ask for help.

Ignoring the problem may only cause bigger problems such as higher interest rates, higher minimum payments, late fees and damage to your credit score.

Add up your income and expenses and look for ways to cut costs. If you can’t find enough to pay your minimum payment, decide how much you can afford to pay.

When calling your credit card company be sure to clearly explain why you can’t pay the minimum payment, how much you can afford to pay, and when you could restart your normal payments.

Watch out for debt relief companies that say they can help you pay off your debts especially if they charge fees before settling your debts, guarantees it can make your debt go away, or tells you to stop making your payments on a credit card or loan.

By: Brenda Langdon

Student Loan Debt Relief Extended One Month Through January

Posted on by mjsaxton@ksu.edu

The Department of Education announced borrowers will receive a one-month extension of the federal student loan administrative forbearance period, the pause in interest accrual, and the suspension of collections activity.

The measures will run through Jan. 31, 2021, as the forbearance period was set to expire at the end of 2020.

The coronavirus pandemic has presented challenges for many students and borrowers, and this temporary pause in payments will help those who have been impacted.

Federal Student Aid is working with federal student loan servicers to notify borrowers of the extension. Some borrowers had already received emails letting them know payments were due again in January.

As has been the case throughout the pandemic, non-payments will continue to count toward the number of payments required under an income-driven repayment plan, a loan rehabilitation agreement, or the Public Service Loan Forgiveness (PSLF) program.

Additionally, wage garnishments for borrowers in default will still be discontinued and any borrowers who have their wages garnished will receive refunds.

By: Brenda Langdon