The months ahead feel uncertain, and we’re all watching closely to see how things unfold.
But instead of feeling entirely powerless, there are several simple, unexpected actions you can take to be proactive — to chip away at debt, reduce monthly bills and safeguard your financial future.
1. Leave Your Loved Ones $1.5 Million with Term Life Insurance; Policies From About $20/Month
As you review your debts and monthly expenses, it’s natural to imagine how daunting it would be for your family to manage those obligations without you. Who would cover the mortgage? Pay for the kids’ education? Handle everyday bills?
Now is an ideal moment to make plans by exploring term life insurance.
You may be thinking you don’t have the time or cash for that, but you might be surprised: an application can take only minutes — and you could leave your family up to $1.5 million through a provider called Bestow.
Premiums can begin at roughly $20 per month, but the reassurance that your family’s finances are protected is invaluable.
If you’re younger than 54 and want a quick life insurance estimate without a medical exam or leaving your home, get a free quote from Bestow.
2. Pause Your Student Loan Payments
If you need breathing room in your budget to address more urgent monthly costs or to tackle higher-interest obligations, you can temporarily stop paying federal student loans.
You might have thought that day would never come, but the federal CARES Act suspends payments and interest on federal student loans through Sept. 30.
This doesn’t erase the balance — you’ll still owe the principal — but because interest isn’t accruing, this is an opportunity to redirect that monthly payment toward more pressing bills. You could put it toward a car loan or apply it to credit card balances, which often carry higher rates.
This six-month pause is applied automatically, but double-check your account to confirm your due amount shows $0.
3. Tell Your Auto Insurer You’re Driving Less
Did you know some car insurers are issuing refunds? Many are providing credits, mailing checks or returning money to customers’ accounts because people are on the road less. That could free up some cash in your budget right now.
Here are some major insurers offering relief:
- Allstate is refunding 15% of monthly premiums for April and May.
- Geico is issuing a 15% credit to customers renewing or buying policies between April 8 and Oct. 7.
- Liberty Mutual will return 15% of premiums for two months and suspend late fees.
- USAA is giving a 20% credit on two months of premiums.
If your insurer isn’t listed, don’t hesitate to contact them. Tell them you’re driving less and ask whether they’re providing refunds or credits to customers.
4. Ask Your Electric Provider for a Break — Even If Your Usage Is Up
Many of us are spending more time at home, which probably means higher electricity usage and the prospect of a bigger bill.
There’s some encouraging news: a few utilities are cutting customers’ bills because fuel costs have fallen. For example, Florida Power & Light planned a 25% cut to residential bills starting May 1. Duke Energy Florida is also temporarily lowering charges.
Even if you haven’t heard from your electric company, it’s worth calling. See if they’re offering refunds, discounts or any temporary relief.
5. Negotiate With Your Credit Card Issuer
If keeping up with monthly payments is difficult, it may be time to call your credit card company and negotiate. You don’t want credit card balances to spiral — those hefty interest rates can cause serious trouble.
Many issuers are providing relief on a case-by-case basis, so contact yours. While you wait on hold (longer wait times are common now), decide what type of assistance would help most.
Options to request include waiving late fees, removing interest charges, lowering monthly payments or reducing interest rates.
This likely won’t be permanent, but ask for a three-month reprieve — it could save substantial money.
6. Reach Out and Ask for Assistance
If your situation is particularly severe and you want to avoid emerging from this crisis with crippling debt, seek help.
Many people cringe at the thought of asking for assistance, but these are extraordinary times and circumstances are largely beyond our control.
If you’re having trouble with mortgage payments, contact your lender. While foreclosures and evictions may be paused, accounts can still be sent to collections and penalties might apply.
You may need to supply proof of job loss or financial hardship, but it’s worth inquiring about relief options.
The same approach applies to other bills — rent, utilities, phone and auto payments.
Just ask.
Jordan Ellis ( [email protected] ) is a staff writer at Savinly.
*Bestow: Policies are issued by Bestow Life Insurance Company, Dallas, TX on policy form series BLI-ITPOL. Bestow Life Insurance products may not be available in all states. Policy limitations or restrictions may apply. Not available in New York. Our application asks lifestyle and health questions to determine eligibility in order to avoid requiring a medical exam. Prices start at $10/month based on an 18-year-old male rated Preferred Plus NT for a $100k policy for a 10-year term. Rates will vary based on underwriting review.
