Today was another very volatile day in the stock market. All gains over the past 3 years were snatched back as global concerns about COVID-19 continue to punch our financial systems in the gut. We are in uncertain times and no one knows how to price stocks right now. Historically, the markets bounce back when given time to do so.

It is important to position yourself to soar once this time of difficulty is over. Rest assured that it will come to an end and when that happens, you want to be in a position to continue to achieve your goals.

Between mortgages, student loans, car loans, furniture loans, credit card debt, personal loans, pay day loans, etc., many Americans were fighting to climb out of debt prior to this global crisis. According to a 2018 study by Northwestern Mutual, the average American has about $38,000 in debt and that does not include their mortgage.

Do you have debt?

How do you plan to handle it right now?

If possible, it is extremely important to pay your current debt obligations and to pay them on time. Currently, on-time payments make up 30% of our FICO scores. If you start missing payments now, your credit scores are going to take a huge hit. Identify ways for you to continue to make on-time payments. Review your Spending Plan. What discretionary items can you eliminate? Create a temporary Spending Plan that accounts for the discretionary items being deleted. Use the Spending Plan template in the Resource Library.

If it’s a choice between late payments and feeding you and your family, food is of course the priority. If you find yourself in a position where you are unable to remit payments on time, call your lender and explain what is going on. Ask if they have any relief programs or extension periods you can leverage. There are millions of Americans experiencing the same thing so remember that you are not alone in this.

More than likely, FICO will adjust their statistical models to account for financial issues taking place during this period of time, but it is important for you to be prepared to continue moving forward either way.

Interest rates are at the lowest of the lows. On Sunday, March 15, 2020, the Federal Reserve cut rates to nearly zero percent. Consumers will see lower rates on new loans. If you were preparing to purchase a new home, that means your rate will be lower. If you were thinking about refinancing your home, your rate will be lower. Lower interest rates mean more dollars left over for you to save and invest. Approval of course is dependent on you qualifying.

We know that this season will pass and the world economy will reposition itself to soar. Make sure you are positioned to do the same.