ON THE MONEY Managing Credit-card Debt

BY JENNY HOFF

There are many crisis situations that can lead to unexpected high credit-card usage and ensuing debt: divorce, health emergencies, loss of job or a global pandemic. If you’ve found yourself with less income and a greater dependency on credit cards, here are two ways you can avoid paying high interest fees on your balance.

CALL YOUR CREDIT-CARD ISSUER OR BANK AND EXPLAIN YOUR SITUATION. Most credit-card companies won’t automatically waive interest accrued on a balance during this time, but they likely have a program in place that could help, says Matt Schulz, chief industry analyst with Lending Tree. “They have so-called hardship programs that offer temporary relief for folks dealing with short-term financial crises because of a natural disaster, and the coronavirus is certainly that,” he says. “Your mileage may vary by issuer, but banks may offer things like waived fees, higher credit limits, lower interest rates and even reduced or waived minimum payments.” While you can certainly fill out an online form or send an email, you’re more likely to be successful with a phone call. Just be prepared for long hold times to get someone on the phone.

CONSIDER APPLYING FOR A NEW CREDIT CARD. If your go-to card is a rewards card that allows you to earn miles, cash back or free hotel stays, it likely also comes with very high interest fees. If you’re not paying off these cards in full every month, you’re paying way more in fees than you’re earning in rewards. “It may seem counterintuitive to get a new credit card in these trying economic times, but the truth is that a 0-percent offer credit card can be a huge help for struggling cardholders,” Schulz says. “Balance transfers are often the first thing people think of when it comes to 0-percent offers, and those are still widely available, but they’re not the only 0-percent offers out there. Many cards that offer 0-percent…annual percentage rate deals [on balance transfers] also offer 0-percent interest on new purchases for a short period of time.” If you get approved for a card that offers no interest for a certain amount of time, it’s important to still only use it for essentials. When the interest eventually kicks in, it will be high, and you don’t want to be stuck with a balance you can’t pay in full.

It’s important to at least pay the minimum payment on time each month to avoid taking a hit to your credit score—unless you work out a deal with your card issuer to delay payments without penalty. But it’s also crucial to not build up a balance that will be difficult to repay once the economy is up and running again. Good credit-card management will help you weather this financial storm both during this crisis and long after it has passed.

If you read my article last month, you know the importance of keeping your car clean and germ-free. While you probably have some extra free time right now (and maybe some kids you need to keep busy), here are some tips for cleaning your car at home.

First things first, clean out everything from your car. Throw away the trash, remove any stuff, take out the floor mats, etc. Then, give it a good vacuum from top to bottom, making sure you get the seats and trunk, as well as the floors and floor mats.

After vacuuming, hose your floor mats down. You can buy pre-made car mat cleaners or create your own by mixing water with two tablespoons of washing powder and two tablespoons of regular shampoo. Then, apply to the mats and use a stiff brush to scrub thoroughly. Spray them off, vacuum again with a shop vaccum or a wet/dry vaccum to suck up some of the water and any remaining dirt, then let dry completely before putting them back in the car.

First, dust all surfaces with a duster or damp towel—microfiber is best. For those hard-to-reach places, an old toothbrush, cotton swab or foam paintbrush will do the trick. Then wipe down everything with a disinfecting wipe that’s safe to use on car surfaces.

For cloth seats, there are DIY solutions, but I suggest getting a spray cleaner that’s specifically for car upholstery. If you have leather seats, there are special leather cleaning wipes you can use that make cleaning a breeze. Don’t forget the kids’ seats, too! Toss the covers in the washing machine and use disinfecting wipes to wipe off all other surfaces.

Rinse off your car first to remove a lot of the dirt and dust that can cause paint scratches. Use a specific car wash soap or combine some vegetable oil-based soap (not dish soap that can damage the paint) with a bucket of hot water and use a microfiber mitt or towel to wash, starting from the top down. Rinse off your car completely, then dry with a microfiber cloth right away to avoid streaks. Don’t forget about the windows; use a basic glass cleaner!

You can buy a specific wheel cleaner but mixing dish soap with hot water works as well. Spray off your wheels, then using a rag or sponge, scrub off all the grease and dirt. Rinse and immediately dry with a clean towel. Happy cleaning! On behalf of all of us at Roger Beasley Mazda, we are here to help if you find yourself in need of automotive service or a new vehicle. We are open and taking all necessary precautions to ensure our facilities are clean and safe for everyone. Please visit rogerbeasley.com or call 866-779-8409 for more info or with any questions!