The bills Americans have had to pause during the COVID-19 pandemic - Business Insider

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Americans who have paused bill payments during the coronavirus pandemic may see long-term consequences start to appear

For many borrowers, this is a relief. For those not earning an income, it's a chance to focus resources on other bills, like living expenses. For those who still have an income, it's become a welcome break to save andBut, people with private student loans don't have the same protections. Anyone with private student loans should check with their lender about whether forbearance is allowed and for how long, and who is eligible. Interest is likely still accruing on these loans.

Meanwhile, personal loan balances increased between January and September. And that could cause a snowball effect going forward. Unsecured personal loans — or loans without an object for collateral, like a car or a home to back it — often have high interest rates. These loans have an. This average increases to 32% for people with poor credit scores. Ultimately, it can increase a loan balance quickly.

Even if your payments are paused, your balance can balloon over time because it's still accruing interest. And that could make the loan more difficult to pay off later. While cell phone bills can accumulate late fees, they likely won't accumulate interest and grow balances like high-interest credit cards and unsecured loans.Many banks, lenders, and other institutions are

 

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Yeah....but let's lockdown the entire country for a couple months. Dark times ahead indeed.

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