Money Talks Blog by Oxford Planning Group

With everything going on in the world right now, a credit score is the last thing on a lot of people’s minds. However, if neglected, it can hurt you for a long time. The pandemic has brought many changes to people’s lives, that can affect some really important aspects. The loss of a job is a big challenge for many people right now. Keeping up with your credit score while trying to navigate a pandemic can be stressful. Here are a few reasons why it is so important though.

Why it’s so important

Your credit score can affect a lot in your life, from being able to rent an apartment to getting a loan, to buy a house.

• A lower credit score can negatively impact your ability to get a loan you need but also can cause you to have a higher interest rate for the loan - if you can get one.

How to check your credit score

This is the only actual free site to check your credit score authorized by Federal Law.  Be sure you’re on the right site – many have very similar sounding names:

http://www.annualcreditreport.com

• Free once a year from each of the three major credit reporting agencies (Experian, Equifax & TransUnion).
• Update: Starting in 2020, everyone in the U.S. can get 6 free credit reports per year through 2026 by visiting the Equifax Website or by calling 1-866-349-5191. That’s in addition to the one free Equifax report (plus your Experian and TransUnion reports) you can get at AnnualCreditReport.com¹

COVID-19 Considerations

• If you have lost your job during the pandemic, try to minimize the impact on your credit score by paying your bills on time and pay at least the minimum required (preferably more though) with money from an emergency fund.
• See what type of assistance there is currently that applies to you for bill relief.
• See if you are applicable for a mortgage suspension or forbearance.
• If you are approved, make sure to check that the suspension period is credited to you correctly, so it does not hurt your credit score by seeming as though you simply did not pay for those allotted months.

Ways to take advantage of the current market

Due to the interest rates cuts cause by the pandemic, rates on mortgages have fallen since the start of the pandemic. This could be beneficial if you are a homeowner with a higher mortgage rate because you may have the opportunity to refinance your mortgage.

There are also many car deals going on right now as dealers are trying to move product that wasn’t able to be sold due to the pandemic. If you are in need of a new car or know you will need one soon, start researching the type of car you want and see if there are any deals going on worth taking advantage of for your personal circumstances.

Take the time to be sure all information reported is accurate and if not, contact those agencies immediately. 

Remember to check both your score and your partner’s credit score as they are reported separately. 

Stay healthy and let us know if you have any questions. 

¹ Source:  https://www.consumer.ftc.gov/articles/0152-credit-scores

As most of us know by now, the Federal and Maryland State Tax return deadline was moved to July 15, 2020. You can either mail in your tax returns or you can E-file. E-filing has some advantages over paper filing, especially if you are younger and below a certain income.

Filing your taxes can be pretty confusing when you are doing it the first couple of times. Luckily, the IRS has a Free Filing option that lets you file your taxes electronically for free if you meet certain criteria. Depending on what state you live in, some of the programs also allow you to e-file your state taxes for free. The criteria varies - some programs have a certain salary limit and others based it off age or eligibility for certain credits. The highest salary allowance for 2019 was $69,000 to file for free.

Simply go to:   https://apps.irs.gov/app/freeFile/

You can use their Lookup tool (blue box at the top of the page) to quickly determine which programs you can use for free.

If you don’t qualify for a free filing program, you can still file for free by simply using the free fillable forms online.

There are a couple of benefits to E-filing, especially right now because the IRS is taking longer to review returns due to the impact of COVID-19.

• You could possibly get your return faster because electronic returns are easier to process than paper returns.
• You have the ability to track your return because the IRS will let you know when the return is received.
  • Once you receive this notification, you can also see when your return is approved and when it will be issued

If you have already filed for 2019 and did it by paper, great job! Your return may take a little longer due to the circumstances of COVID-19. If you have not already filed, consider E-filing to save time!

As we have all slowly adjusted to our “new normal” (I bet you’ve heard that phrase about 20 times this week), it seems almost odd that it has been about 2 months into this quarantine. Wearing a mask is pretty much second nature at this point when I go into a store. I’ve seen the word “essential” plastered everywhere from signs saying thank you to workers, to commercials taking advantage of the new popular word. As we see the infection rates start to come down thanks to social distancing, hope can creep in that we can start to re-open certain businesses. While some states have already re-opened, Maryland is taking a more cautious approach and basing openings off data and trends for the infection and death rates.

Governor Hogan is implementing a stage-based recovery program for Maryland, in hopes to best serve our state and prevent a resurgence of infection rates.

Stage 1 (As of May 28^th – this is our current status)

This stage is based off low risk activities and re-openings. In order to get here the Governor needed to see a consecutive 14-day decline in a numbers dealing with hospitalization rates. The point of this step is to move slow and watch infection rates as some things are allowed to reopen.

• The stay at home order was lifted and replaced with a “safer at home” guideline
• Changes that have occurred so far:
  • Opening of small shops and businesses
  • Curbside pickup for businesses
  • Elective medical procedures
  • Small attendance outdoor religious gatherings
  • Recreational boating, fishing, golf, tennis camping, hiking, & hunting
  • Outdoor fitness classes
• Changes effective May 29^th at 5 p.m. :
  • Outdoor dining for restaurants
  • Youth sport and day camp activities for no more than 10 individuals
  • Outdoor pools at 25% capacity
• Hogan gave discretion to each county as to when they would begin phase 1 due to the varying levels of infection rates in each
• Howard county has just announced that as of this Friday, May 29^th, we will begin opening some businesses at 50% capacity and slowly moving into Phase 1
• Stop signs: various things can occur that would require Maryland to stop moving through a phase or revert to previous rules
  • Increase in hospitalizations
  • Disregard for social distancing guidelines
  • Significant outbreaks of community transmission (sustained increase over 5 or more days)

If Stage 1 is a success (hospitalization and infection rates do not spike), then medium risk activities will begin to open. Many people are frustrated at the slow pace of the reopenings; however, they are designed to protect Marylanders, prevent a spike of infections, and help with a steady recovery. Please do your part by wearing a mask, practicing social distancing, and enjoy things as they begin to open while following guidelines.  We wish everyone good health.

Happy Spring! We are officially in the 3^rd week of it now. While no one envisioned their spring to start off this way, all we can do is try to make the best of it. I have been thoroughly enjoying noticing all of the beautiful flowers popping up around my house and loving it as the days get longer. 

Now would probably be about the time of year that I would try to make a great and nonboring blog about “Spring Cleaning Your Finances”. However, with all the uncertainty surrounding the coronavirus right now, I don’t think that’s what anyone needs. Instead, let’s talk about spring cleaning your mind and your space! 

Keeping Healthy

There is obviously a huge focus on physical health right now. There should also be a big focus on mental health as well. I’m not even going to pretend to know too much about what is going through the minds of people across the nation. Everyone is being affected differently right now. If you are feeling stressed for one of the many reasons out there right now, make sure to take care of your mental health in whatever way is best for you. Below are a couple of easy suggestions. 

• Go for a daily walk outside if you are able (this is allowed even in states where the shelter in place measures are in effect)
  • make sure to respect the social distancing measures and stay 6 feet away from people
• Find an indoor activity that you enjoy that can help take your mind off of things
  • I love baking and cooking and while I don’t always have the time, it definitely helps take my mind off the day 
• Take a break from social media and the TV
  • Scrolling through my feed all I see are either stories about the virus or some new at home workout I should buy (neither are particularly relaxing to look at) 
• Reach out to friends and family
  • Talking on the phone or video chatting with people has helped brighten my day and made me feel a little more connected to people 
• Try out a meditation app or podcast!
  • There are a lot of free apps available right now - a quick google search can help you find which one might be best for you

If you are feeling a bigger strain on your mental health right now, reach out to a professional. There are many online services available during this current crisis. 

Spring Clean Your Space

Yes, I know this is not a new idea; however, I don’t think it has ever been more relevant. With so many people working from home or having to stay inside with their whole family, a clean slate might be just what you need. 

• Make a list for the week with one space to clean each day. Make it manageable so it isn’t a huge task if you don’t have tons of time. It can be simple like cleaning out that junk drawer that always bugs you or something more involved like organizing your closet. 
• Get the kids involved! With the beautiful weather finally emerging, get outside and have the kids help weed your garden if you are lucky enough to have one (and lucky enough that the kids will help) 
• See what you can donate! Spring is already a big time for donations as people clear out what they don’t need and now they are needed more than ever
  • From books to clothing donations, there is a charity out there trying to find a way to use most items in good condition to help people during this uncertain time

Do you part and stay inside to help our community! 

Social Distancing

               This is the big buzz word on social media right now. While there are many jokes and memes out about this, it isn’t a joke. This is a very important concept right now that could help us slow down the spread of the virus. The fact is that this virus can have very serious consequences. From what we have seen from other countries, it will most likely only continue to get worse here. Even if you aren’t that worried about getting it yourself, you need to be following the CDC and state guidelines to protect those around you. While a night out with friends sounds fun, the consequences of potentially passing on the virus to someone who is going home to family members that could be affected definitely isn’t something to take lightly. So, let’s all do our part and try to keep our community safe.

Work from home tips

               Many people are finding themselves newly working from home or working from home a lot more than they did before.  While this is such a great opportunity to be able to continue working while also practicing social distancing, it can be a little difficult to get into a good routine and keep yourself on track while at home.

Here are a couple of tips to help you stay productive during your new “normal” workday:

·         Start the morning by making a list of things to get done that day

·         Change out of your pajamas to get your brain into work mode

·         Get up and stretch for 5 minutes every hour

·         Keep a normal lunch hour

·         Create a clutter free space specific for you to do work

For those of you home with kids right now, my sincerest apologies.

On a more helpful note, I know many teachers are going on Facebook and posting what grades they teach if you need any help. I’ve also seen posts from schools telling parents not to overwork themselves trying to keep a perfect school schedule. This is a weird time so give yourself a break. If the kids just aren’t having it one day, do something creative instead or read a book together instead of working on that impossible math question that has just led to tears.

Health tips

The CDC has been updating their website daily with new information and reports on the Coronavirus.

                          https://www.cdc.gov/coronavirus/2019-ncov/index.html

Go to their website listed above for more in depth information on what to do during this time. 

Small Businesses

               With states starting to shut down restaurants, bars, and shops other than the necessities such as grocery stores, small businesses are struggling already. While some jobs are not as affected and can continue their day to day operations, these small businesses are not as fortunate and are having to close completely. No sales means no money coming in at all. People are struggling to figure out how to pay their employees and keep their businesses afloat.

·         Buy gift cards to your favorite places – for your self and consider them as gifts for others

·         See if any of them are doing take out

·         Businesses can sell beer and wine for delivery

·         Spread the word about your favorite local places!

One of my favorite local shops has a sign that means more in these times – it simply says commUNITY.

It really does take a village.  Save lives and stay inside.