Covid-19 Blog #1
I have listened to many experts talk about our current financial crisis. It seems to me that they have no idea what is going on out here in the real world. One expert today said people should reduce their spending to a level of subsisting on ramen noodles and save money so that one could subsist for 6 months. She even suggested that people cut off internet service. If people have children who are now homeschooling or if people need to apply for unemployment online how would that work? A large chunk of the population has lost income with no idea when or if it will ever come back. Also those people who are on fixed incomes are finding it more expensive to exist. Older folk have to pay to have groceries delivered. Also most manufacturers are not putting out coupons in the local papers. Even if coupons are available, using them in the current climate seems troublesome. However most low income people use coupons to stretch their grocery budget. Is it any wonder why the food banks are overrun? When the stimulus checks start arriving, people will be conflicted about what to do with the money. While some creditors have allowed people to extend their notes or skip a payment some creditors have not. Maybe the best solution is to let everything go until the stay at home orders are lifted and we see how the economy rebounds.
Now might be the time to really look at how money has been spent in the past and if there is a way to limit spending in the future. There is a new subchapter of Chapter 11 that could help small businesses recover. Chapter 7 and Chapter 13 are available to help people recover once the economy opens up.
Now might be a good time to set up a telephone appointment to review your options and plan for the day the economy reopens.