GREEN BAY, Wis. (NBC 26) -- Before COVID-19 hit the United States, a majority of Americans were living paycheck to paycheck; in fact, 40% could not afford a $400 emergency without borrowing the funds or selling something of their own to accommodate such an expense.
As unemployment skyrockets and the stock market struggles, Wisconsinites can feel the impact of coronavirus everywhere they turn amidst Governor Evers' Safer at Home initiative. So much financial turmoil and consumer fear has led one national non-profit to put together a guide on how to handle it all.
Credit.org, originally founded as the Consumer Credit Counseling Service, is a non-profit agency that strives to provide financial literary and well-being through education and coaching. Based on input from new and previous clients facing unprecedented hardship due to the coronavirus pandemic, Credit.org compiled a COVID-19 Financial Assistance Guide on their blog with content applicable to everyone at all levels of cash flow and financial stability.
Melinda Opperman, the Executive Vice President of Community Outreach and Industry Relations for Credit.org, emphasizes to clients that "there's no shame in having to adjust your budget due to a medical event."
Opperman specifically stresses this lesson across the board because consumers should not "assume something couldn't happen" to their financial situation.
"Even if you have hours" or steady employment right now, Opperman reminds us how quickly things have changed overnight in America lately.
The biggest lesson that everyone could learn from is to eliminate non-core essential costs in order to deep dive within your budget. By only spending what you need, your budget will remain that much more flexible in response to an emergency or loss of income.
Some regular costs will naturally decrease or disappear altogether as a result of social distancing or quarantining, such as transportation, eating out, entertainment and beauty regimens. Credit.org recommends that you reallocate these funds to emergency savings.
Due to the market chaos, many are tempted to take advantange of the tax filing deadline extension, but Opperman does not recommend waiting.
"You could get a refund right now," Opperman explains, which could go in to aforementioned emergency stash or other areas of flexible budgeting. There are also plenty of tax credits, like the Earned Icnome Tax Credit, that conumers aren't always aware of. That's what financial coaches and advisors can help you uncover.
"We're finding that people aren't aware of what we can help them with, because they're experiencing a shock to the system as how life has been disrupted," Opperman says.
There are four CCCS offices in Wisconsin, but the national office is offering remote services at this time in accordance with social distancing regulations.
