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As the COVID-19 Delta variant continues to spread in the United States, Democratic lawmakers have introduced a bill to reinstate the expired moratorium on evictions. (iStock)
Senator Elizabeth Warren (D-Mass.) And dozens of progressive lawmakers on Tuesday introduced the Keeping Renters Safe Act of 2021, aimed at reinstating the national moratorium on evictions.
This pandemic is not over and we must do all we can to protect tenants from the damage and trauma of unnecessary evictions, which disrupt the lives of those struggling to get back on their feet.
The Centers for Disease Control and Prevention (CDC) previously mandated a freeze on evictions in September 2020 to help stop the spread of COVID-19. Still, the Supreme Court ruled that the agency could not continue to extend the ban without congressional approval.
After the initial protections against COVID-19-related evictions expired in July 2021, the Secretary of the Department of Health and Human Services (HHS) issued another moratorium on evictions under the leadership of President Joe Biden. But the Supreme Court has again ruled that the HHS secretary does not have the power to implement a ban on residential evictions.
The Keeping Renters Safe Act would give the Secretary of the HHS standing authority to implement a residential eviction ban during public health crises to help prevent the spread of communicable diseases, including in homeless shelters. The law would also direct the HHS to implement a moratorium on evictions to remain in effect as long as the COVID-19 pandemic remains a public health emergency.
Although some state and local governments have issued guidelines on evictions, there is currently no eviction ban in place by the federal government.
Whether you are a landlord struggling to cope with unpaid rents or are a tenant at risk of eviction, you have options for managing your finances during the coronavirus pandemic. Read on to find out more and visit Credible to browse multiple products it can help you overcome financial difficulties.
OWNERS MAY CONSIDER THESE ALTERNATIVES TO EVICTIONS UNDER THE NEW MORATORIUM
Alternatives to eviction for homeowners
Although eviction bans have been lifted in many states, evicting a tenant can be an expensive process. Here are some alternative options that landlords have if their tenants don’t pay rent:
- Apply for financial assistance: The Emergency Rent Assistance Program (ERA) can cover up to 18 months of rent for landlords whose low-income tenants are in default. Eligibility is based on the tenant’s household income and financial hardship.
- Enter mortgage forbearance: Contact your mortgage lender to sign up for Hardship Forbearance and suspend your monthly mortgage payments. Keep in mind that interest may accrue during the forbearance period.
- Refinance your mortgage: With mortgage rates stable below 3%, now is a good time to look into mortgage refinancing. You may be able to lower your monthly payments or even pay off your mortgage faster.
If you do decide to refinance your mortgage, it is important to seek the lowest possible interest rate for your situation. You can get prequalified to see your estimated mortgage refinance rate without affecting your credit score on Credible.
3 ways for troubled tenants to cut spending
There is currently no moratorium on evictions in many parts of the country, which means tenants in financial difficulty can be evicted if they don’t pay their rent. In addition to the rental assistance programs mentioned above, consider a few ways to reduce your budget so that you can continue to pay your rent on time and avoid evictions.
13.4 million Americans behind on housing payments, survey finds
1. Download a budgeting app
Budgeting apps can help you identify areas where you may be overspending. These apps are linked to your bank account to automatically categorize your expenses, making the entire budgeting process smoother than ever. For example, you may be spending more on dining and entertainment than you really think.
You can even set up alerts that automatically notify you if you are over budget in certain categories.
There are many free budgeting apps available on mobile and desktop platforms. You can also sign up for free credit monitoring through Credible to keep tabs on your credit score.
2. Refinance your private student loans
Refinancing a student loan involves taking out a new loan with better terms, such as a lower interest rate, to pay off your current loan. By refinancing your private student loans, you may be able to save money on interest, lower your monthly payments, and even pay off your loans faster.
Creditworthy borrowers who refinanced a longer term student loan on Credible were able to reduce their monthly payments by more than $ 250 on average, without increasing the overall cost of the loan.
Now might be a good time to refinance your student loan debt, as interest rates are nearing all-time lows.
You might be able to get a much lower interest rate on your student loan debt. However, it’s important to know that refinancing your federal loans into a private student loan will make you ineligible for certain borrower protections such as income-based repayment plans and administrative forbearance.
Compare the student loan refinance offers on Credible to see if you qualify for the most competitive interest rates.
3 TIPS TO HELP LIGHTEN THE BURDEN ON STUDENT LOANS AFTER THE ABSENCE IS OVER
3. Consolidate your credit card debt to lower your monthly payments
Revolving credit card debt is a costly burden on your wallet that can prevent you from meeting your other financial obligations, such as paying rent. It can be difficult to keep track of your credit usage as interest accumulates daily and the minimum payment can lead to a long and expensive debt repayment process.
Consider consolidating your credit card debt into a personal loan at a lower interest rate. Sometimes referred to as debt consolidation loans, personal loans allow you to pay off credit card debt in fixed monthly installments over a predetermined period of time.
Paying off credit card debt with a personal loan can help you lower your monthly payments and save money on interest charges over time. Borrowers who refinance credit card debt on Credible have the potential to save money on their monthly payments and pay less interest over time.
Use a personal loan calculator to estimate your monthly payment and see if credit card debt consolidation is the right option for you.
AMERICANS RANK DEBT REPAYMENT AS HIGHEST FINANCIAL PRIORITY, STUDY SHOWS
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.
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