In Rockaway New Jersey, it's been 4 days since schools have closed. Those who still have the luxury of a job, are now working from home while home schooling children. Small businesses have been devastated, many having to close their doors while others - such as restaurants - remain open for limited service. Life as we knew it, has come to a halt in an attempt to slow down the spread of #CONVID19.
Unfortunately for many, the current health scare is not the only uncertainty to mitigate. The quarantine has left many jobless while still having to shoulder a mortgage, lease payments, SBA loan and more. Yesterday, the #NYTIMES put out an article about Mortgage lenders considering suspending payments during the crisis. If it happens, it would be a much needed reprieve for many during an already difficult time.
While we wait for aid, I would offer the following advice:
1. Call your lender
If you're in danger of missing a payment due to unemployment, get ahead of the situation and call your lender immediately. Most banks would rather help an existing customer rather than foreclose and lose even more money. This applies to those holding commercial loans/leases as well. Talk to your lender, then talk to your landlord to see if you can suspend payments for 6 months, then perhaps roll the difference back into the lease/loan over the entire period. It may be a small increase in your monthly payments but will keep your business open.
2. Speak with a financial planner
Get some professional help (if needed) investing what you have or best managing your savings in the midst of the crisis. I spoke with Gabriel Veliz from Merrill and he mentioned using home equity to take out a HELOC while rates are so low (I took one out when I started my business). He'll also be hosting weekly webinars on the recent market volatility and advice on how to react. Gabe can be reached at (gabriel.veliz@ml.com).
3. Use the time to refine your skills and plan for the next crisis (there is always another one)
If we've learned one lesson from this, it's that things can change quickly and you better have a plan B (and C) in place for when it does. If you've lost a job, think of what your next move will be. Use this time to explore other career options (perhaps an online business) and get some training. You may also consider ways you could build some passive income. We have little control over how long this will last. What we can control is what we learn and how we react. Godspeed and be safe!
Comentarios