For people not working because of COVID-19, April 1 means trouble
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People don’t want a stranger in their house right now, nor does Chicago-based real estate photographer Norma Rios want to put herself at risk.
Which means she doesn’t have money coming in. She’s filed for unemployment, but credit card bills are due today.
For many Americans, the first of the month has loomed in a way it hasn’t before. Rent, credit card, mortgage payments are all typically due right now and the Treasury Department’s aid checks won’t be ready for weeks.
“I called the credit card companies and they all said I could delay payments. There won’t be any late fees, but the interest will continue to accrue,” Rios said.
The pressure is weighing heavily on her. “My heart’s beating really fast. I’m anxious. No interest would help me out for the next year. I would still be able to make my payments. But the interest accruing is going to kill me if I don’t make them regularly. And I don’t know where my income is coming from.” She says she’d like the government to step in. “It sounds like the banks are going to get the help that they need. But what about the rest of us?”
Jack Gillis, executive director at the Consumer Federation of America, said some lenders won’t charge interest this month but “each of the credit card companies are handling this in a different way, so it’s important to check in with the company, let them know you want to make the payments, but you are simply not able to.”
Figure out what bills won’t be forgiven and tackle those first, Gillis added.
Chris Dancy is a health consultant in Texas who makes most of his income between February and April. He’s had no jobs this season. He says he can cover his mortgage this month, but maybe not for much longer. He tried to call his bank, but there was a 20-hour wait time.
“It would be foolish to continue to pay a mortgage in a time when there is no real visibility into how this plays out post-June,” he said.
New York Governor Andrew Cuomo ordered a 90-day freeze on all evictions. But if renters can’t pay now, it’s possible they just get kicked out in a few months, according to Cea Weaver with the nonprofit Housing Justice For All.
“We are calling for a universal forgiveness for all rent and mortgages that are owed during this period of COVID-19,” Weaver said. “We think it has to be universal because the people who this crisis has hurt the most [are] the people who work in the cash economy, or the informal economy, or precarious employment. Like working as bartenders, or serving as restaurants. For folks like that, it’s going to be really hard to prove your income.”
Weaver said it would not be without precedent: Italy is suspending mortgage payments. In the era of shelter in place, she said, the government needs to make sure people can hold on to their shelter.
COVID-19 Economy FAQs
So what’s up with “Zoom fatigue”?
It’s a real thing. The science backs it up — there’s new research from Stanford University. So why is it that the technology can be so draining? Jeremy Bailenson with Stanford’s Virtual Human Interaction Lab puts it this way: “It’s like being in an elevator where everyone in the elevator stopped and looked right at us for the entire elevator ride at close-up.” Bailenson said turning off self-view and shrinking down the video window can make interactions feel more natural and less emotionally taxing.
How are Americans spending their money these days?
Economists are predicting that pent-up demand for certain goods and services is going to burst out all over as more people get vaccinated. A lot of people had to drastically change their spending in the pandemic because they lost jobs or had their hours cut. But at the same time, most consumers “are still feeling secure or optimistic about their finances,” according to Candace Corlett, president of WSL Strategic Retail, which regularly surveys shoppers. A lot of people enjoy browsing in stores, especially after months of forced online shopping. And another area expecting a post-pandemic boost: travel.
What happened to all of the hazard pay essential workers were getting at the beginning of the pandemic?
Almost a year ago, when the pandemic began, essential workers were hailed as heroes. Back then, many companies gave hazard pay, an extra $2 or so per hour, for coming in to work. That quietly went away for most of them last summer. Without federal action, it’s mostly been up to local governments to create programs and mandates. They’ve helped compensate front-line workers, but they haven’t been perfect. “The solutions are small. They’re piecemeal,” said Molly Kinder at the Brookings Institution’s Metropolitan Policy Program. “You’re seeing these innovative pop-ups because we have failed overall to do something systematically.”
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