Prioritizing Debt in a pandemic

Prioritizing Debt in a pandemic

RICHMOND, Va. (WWBT) - The economic fallout from COVID-19 is far from over so having a strategy is a smart move when it comes to repaying your debt.

Federal student loans are on hold through September and should not be viewed as a top priority to pay them back according to our partners at the financial website Nerdwallet.

Nerdwallet financial experts say high interest debt and retirement savings should come before student loans.

If your mortgage is federally backed and you are having trouble paying it, you can consider a forbearance. The loan isn’t forgiven, just postponed.

Keep in mind, interest will still accrue and you will have a certain amount of time to pay it back or tack it to the end of the loan period.

If you have credit card debt, experts say to pay that fist. These carry the highest interest charges.

Many credit card companies have opened hardship programs that can lower interest rates, pause payments or waive late fees.

If you’re having trouble repaying a car loan, contact your lender. Many are offering hardship programs making it easier to pay down your ride.

Copyright 2021 WWBT. All rights reserved.