American Financial Benefits Center on How Loss of Income Can Affect Family Finances
EMERYVILLE, Calif., March 2, 2018 /PRNewswire/ -- Losing a job can be devastating for a family's finances, and the thought of that happening can stress out any individual. However, it turns out that women are more concerned about that possibility than men are, and their concerns focus on different aspects of family life. American Financial Benefits Center (AFBC), a document preparation company that assists with federal repayment program applications, reminds its clients that if they lose a source of income, they can recertify their income before their annual deadline to potentially reduce their student loan payment and help ease their financial stress.
"Losing any income in a household can be bad for a family's finances," said Sara Molina, Manager at AFBC, "especially with how complicated bills can be these days with student loan debt and all the costs associated with having kids."
According to a recent study, in the event of a loss of income, men tend to worry more about their ability to pay bills, including student loans, while women tend to worry more about how a loss of income would affect their children. Either way, if a loss of income does occur, there are steps that the family can take in an effort to take control of the situation.
Perhaps the first thing a family should do after losing some income is look at where that leaves their finances. Some families may find that with a strict budget, they can still cover all their expenses. Those whose lower income does not cover everything can reach out to their landlord, credit card company, and other financial obligations to try to work something out until they can increase their income again. Such communication should be done as soon as possible. A landlord is more likely to cooperate if rent is not already late.
Families who have federal student loan debt can apply for deferment or forbearance for a short-term solution or an income-driven repayment plan (IDR) for a longer-term solution. Individuals who are already enrolled in an IDR can recertify their income before their annual deadline to get their monthly payment recalculated.
"The good thing about federal student loans is that if your income goes down, there are options available to you without having to negotiate," said Molina. "At AFBC, our clients are in IDRs that have helped them be able to afford their loans. If they experience a loss of income, they can simply request a recalculation of their payment to reflect the new income. We help with that paperwork to make sure they send the proper documentation to accurately represent their situation."
About American Financial Benefits Center
American Financial Benefits Center is a document preparation company that helps clients apply for federal student loan repayment plans that fit their personal financial and student loan situation. Through its strict customer service guidelines, the company strives for the highest levels of honesty and integrity.
AFBC is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Contact
To learn more about American Financial Benefits Center, please contact:
American Financial Benefits Center
1900 Powell Street #600
Emeryville, CA 94608
1-800-488-1490
[email protected]
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SOURCE American Financial Benefits Center
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