Part One: Critical Budgeting
- 1. When Ends Don’t Meet Short Term Solutions When You Don’t Have Enough
- 2. Origin SC | Our Mission • Origin SC, a non profit organization, empowers individuals to achieve financial and housing stability through advocacy, counseling, and education. • Founded in Charleston in 1888 • Now serving all of South Carolina
- 3. About Origin SC Since 1888, Origin SC has remained one of the leading nonprofit human service organizations in providing professional financial and housing counseling services in the Charleston area. Formerly known as Family Services, the organization rebranded as Origin SC in 2016. 13 Wentworth Street where Family Services Agency was located in 1959.
- 4. About Origin SC In 2003 Origin SC added our housing component. The Homeownership Resource Center Programs include: • Homebuyer education • Homeownership Preservation • Fair Housing • Financial Education & Coaching • Credit Improvement
- 5. Privacy Policy Origin SC will not share your information with any agency without signed permission from you.
- 6. What is a Budget A budget is a financial planning tool for managing how you will spend your money. It’s used for finding a balance between your income and expenses. – It lists your money coming in and expenses going out helping to make sure they equal each other. – We can view it as a plan that reminds us of what to do with our money and where it should go.
- 7. What is A Short Term Budget ? • Think of this as a financial tool used for survival. It can help us make adjustments to our spending lifestyle when our income has been temporarily reduced or in a financial crisis. Helps ensure important bills get paid such as mortgage/rent and food stays on the table This typically lasts less then 6 months
- 8. Today’s Topics • The Big 5 - necessities that must be paid • Court Ordered Payments • What about my other bills? • What about my debt? • How to catch up
- 9. The Big 5 1. Housing 2. Medication 3. Food 4. Transportation 5. Utilities
- 10. 1. Housing: For Home Owners – Forbearance: Your mortgage payments are reduced or suspended for a period of time that you and your lender both agree upon. At the end of that time, you resume making your regular payments as well as a lump sum payment or additional partial payments for a number of months to bring the loan current.
- 11. 1. Housing: For Home Owners - Loan modification: You and your loan servicer agree to permanently change one or more of the terms of your mortgage contract to make your payments more manageable for you. Modifications may include reducing the interest rate and/extending the term of the loan. For more information: https://www.consumer.ftc.gov/articles/0187- when-paying-mortgage-struggle
- 12. 1. Housing: For Renters – In the state of South Carolina, under the new COVID 19 legislation starting in March 2020, all new evictions will be suspended and no new evection proceedings will be permitted until after May 1st 2020. – This date could be changed depending on how long the work places remain closed.
- 13. 1. Housing: For Renters However, it is important to note that rent will still be due each month or as stated in the lease even though eviction proceedings are paused for the time being. So what does this mean exactly? – Tenants may find themselves with a large bill if they cannot pay rent for an extended period. Landlords may be willing to make arrangements with tenants to delay or reduce rent payments but they are under no obligation to do so. – This could mean you will be paying late fees in addition to any past due rent payments that are owed.
- 14. 1. Housing: For Renters What should you do if you simply don’t have funds to pay your rent? Contact your landlord and try to establish a payment plan.
- 15. 2. Medication Continue to buy your needed medication. Contact your pharmacy to see if they are willing to work on a payment plan with you (don’t apply for a credit card) Use “Good RX” and other apps that can help find your current medication at a reduced rate. See if the manufacturer of the medication has coupons.
- 16. 3. Food Keeping food on the table during a financial crisis can be challenging and stressful. Below are some tips to help ease the pressure and anxiety around providing ourselves and our families with well balanced meals. 1. Create inexpensive meal plans & make a shopping list for those meals only! (If it’s not on the list, you probably don’t need it!) 2. Cut going out to eat 3. Look online for budget friendly meals
- 17. 3. Food Continued…….. 4. Cut back as much as possible (It’s ok to live on PB&J, Ramen noodles, and rice and beans for a short time.) This will pass! 5. Some schools still provide free meals for students 6. Ask for help from food banks, churches, and other community organizations. 7. Don’t over-buy out of fear!
- 18. 4. Transportation Pay your car loan and auto insurance - If you can’t pay your car payment, call your lender and make arrangements. - If you can’t pay your insurance, call your insurance company first. It is always better to be upfront and more often than not, arrangements can be made, but you have to communicate!
- 19. 4. Transportation Cutting back on your car payment (be very careful) - Some banks might offer modifications on your current loan and/or allow you to add payments to the end of the loan. How to cut back on insurance - Do you need all of the coverage you have or can you go with less coverage for awhile? - If you don’t have a car payment evaluate your need for full coverage. - Try shopping around for a lower rate. Call several different companies and compare prices.
- 20. 5. Utilities • Gas, Electricity, and Water – If you can’t pay the bill, call and see if you can pay less or skip payment for a month. Don’t just pretend it’s not happening. (understand you will be required to catch up at some point.) • Phone – If you can’t pay, call the companies and see if you can adjust your package or if they have better rates. – If they tell you that you can skip a payment or pay later, make sure you find out the due date of that payment and get it in writing. COMMUNICATION is key!! www.mint.com
- 21. 5. Utilities • Internet – If you are working from home and or have children using the internet for school, this might be a need/necessity. Work with the internet provider to get the best rates. Shop around many providers are offering limited free service. Do watch out for what contract requires and what payments will be after the limited free period. Please remember that any and all missed payments will need to be paid back and that it is important to pay these if you can. www.mint.com
- 22. 5. Utilities • Cable (This is not a necessity) – This should be one of the first budget cut backs you make. If you are in a contract, ask if the provider will extend the service contract date and allow you to cut back temporarily until the hardship is over. If they refuse, cancel it and you can deal with the broken contract fee at a later time. **If you can’t pay for your utilities, transportation, food and shelter this needs to go.
- 23. Court Ordered Payments • If your income has changed, call the court house and try to make other arrangements. • You must show that you have exhausted every source and made a diligent effort to comply with the Court's order. • You cannot just stop making payments!