Nearly Half of All Americans Missed Rent or Mortgage Payments as the Nation Hits One Official Year of COVID-19

shutterstock_1645087993

DISCLAIMER: As the COVID-19 public health situation evolves, new regulations are being continually issued. This page/story/information may not include the most recent information.

New GOBankingRates’ surveys showcase staggering statistics on how the pandemic has drastically affected Americans across the country during the past year.

NEWS PROVIDED BY GOBankingRates  Mar 11, 2021, 07:15 ET

LOS ANGELES, March 11, 2021 /PRNewswire/ — On March 13, 2020, COVID-19 was declared a national emergency in the U.S., thus drastically changing everyone’s lives overnight. As we mark the one-year anniversary, we know the effects of the virus on the world and, more specifically, society will be felt for many years to come. Not only has the pandemic changed the way we work, eat, socialize, work out and our overall perception of time but it has had a severe impact on the state of the economy as well as detrimentally impacting the finances of Americans all across the country.

GOBankingRates’ new survey has found that a staggering 46% of Americans missed one or more rent/mortgage payments, and that 25% have missed more than one.

“As we hit the one-year mark of the coronavirus pandemic, GOBankingRates is reflecting on how COVID-19 has affected nearly every aspect of the economy and how Americans work, spend, save and invest,” said Gabrielle Olya, Lead Writer at GOBankingRates. “We’ve also spoken to experts across a number of fields to get their insights on the financial lessons the pandemic has taught us, how far we’ve come in the past 12 months and what we still need to do to get back to ‘normal.'”

One especially hot topic of this past year has been the issuing of stimulus checks. On Wednesday, March 10th the $1.9 trillion American Rescue Plan passed in the House of Representatives, meaning that the third direct payment checks would be on their way once the Act is signed by President Biden. But according to a new GOBankingRates survey, the spending of this most recent check varies with 45% saying it would be going to paying bills and 39% saying it would be used to purchase groceries.

Americans all across the country have had to deal with numerous financial pressures this past year. These common issues include losing a job, sacrificing careers for childcare, covering health expenses, pivoting businesses to stay afloat and much more. Maintaining daily and monthly expenses like rent or mortgage payments has even become an intense struggle. GOBankingRates’ new survey has found that a staggering 46% of Americans missed one or more rent/mortgage payments, and that 25% have missed more than one.

Additional Insights

  1. Men missed more payments than women, with 48% of men saying they missed one payment, and 45% of women.
  2. An overwhelming majority of Americans -67%-say they have taken on some kind of debt, with the largest section being in the $1,000 – $4,999 range, at 21%.
  3. Men said they accrued larger amounts of debt with women having a higher response rate to smaller amounts of debt.

Missed payments and accruement of debt could be the direct result of layoffs and reduced work hours. GOBankingRates’ survey recently also revealed that 22% of Americans who lost their jobs are still unemployed. “Those who are in the entry level jobs at most companies are usually seen as the most dispensable, so the logic follows that if they were let go at the beginning of the pandemic, they would also in most cases be the last to be rehired,” GOBankingRates associate researcher Julia O’Brien says.

Further Insights

  1. 27% of Americans received unemployment for the first time, while 46% say they received some sort of unemployment. 
  2. Younger generations were hit the hardest – 36% of the 18 to 24 age group and 33% of the 25 to 34 age group say they received unemployment benefits for the first time.
  3. Looking to the future, 61% of the respondents say they are confident in their employment status for the rest of 2021.

As the world continues to make progress with tackling this tragic pandemic, GOBankingRates is looking towards a brighter future and hopes for the nation to be able to continue on with their goals and plans to Live Richer™.

If you have any questions about the surveys or wish to speak to a GOBankingRates editorial representative, please direct all media inquiries to:

Contact:

Christine Kayayan, Media Relations
GOBankingRates.com
ckayayan@consumertrack.com

About GOBankingRates

GOBankingRates.com is a personal finance news and features website dedicated to helping visitors Live Richer™. From tips on saving money to investing for retirement or finding a good interest rate, GOBankingRates helps turn financial goals into milestones and money dreams into realities. Its content is regularly featured on top-tier media outlets, including MSN, Yahoo!, FOX Business, CNBC, Business Insider, USA Today and dozens of others. GOBankingRates specializes in connecting consumers with the financial institutions and products that best match their needs. Start your journey toward a rich mind and full wallet with us atwww.gobankingrates.com.

SOURCE GOBankingRates

Facebook
Twitter
LinkedIn
Pinterest

Michigan license number:   DM-0016282 Available to the public and licensed in Michigan.

Section 13(1)  When a licensee establishes a debt management plan for a debtor, the licensee may charge and receive an initial fee of $50.00

Section 13(2)  A licensee shall attempt to obtain consent to participate in a debt management plan from at least 51%, in number or dollar amount, of the debtor’s creditors within 90 days after establishing the debt management plan. If the required consent is not actually received by the licensee, the licensee shall provide notice to the debtor of the lack of required consent and the debtor may, at its option, close the account. If the debtor decides to close the account, any unexpended funds shall be returned to the debtor or disbursed as directed by the debtor.

Sec. 14. (1) A contract between a licensee and debtor shall include all of the following:

(a) Each creditor to which payments will be made and the amount owed each creditor. A licensee may rely on records of the debtor and other information available to it to determine the amount owed to a creditor.

(b) The total amount of the licensee’s charges.

(c) The beginning and termination dates of the contract.

(d) The principal amount and approximate interest charges of the debtor’s obligations to be paid under the debt management plan.

(e) The name and address of the licensee and of the debtor.

(f) Any other provisions or disclosures that the director determines are necessary for the protection of the debtor and the proper conduct of business by a licensee.

Sec. 18. (1) In addition to the fee described in section 13(1), a licensee may charge a reasonable fee for providing debt management services under a debt management plan. The fee under this subsection shall not exceed 15% of the amount of the debt to be liquidated during the express term of the plan.

(2) A licensee may offer a debtor the option to purchase credit reports or educational materials and products, and charge a fee to the debtor if the debtor elects to purchase any of those items from the licensee.  Fees charged under this subsection are not subject to the 15% limitation on fees described in subsection (1).

(3) Except for a cancellation described in subsection (4), in the event of cancellation of or default in the performance of the contract by the debtor before its successful completion, a licensee may collect $25.00 in addition to any fees and charges of the licensee previously received by the licensee. This $25.00 fee is not subject to the 15% limitation on fees and charges under subsection (1).

(4) A contract is in effect when it is signed by the licensee and the debtor and the debtor has made a payment of any amount to the licensee. The debtor has the right to cancel the contract until 12 midnight of the third business day after the first day the contract is in effect by delivering written notice of cancellation to the licensee. A cancellation described in this section is not subject to, and a licensee shall not collect, the fee described in subsection (3).

(5) If a debtor fails to make a payment of any amount to a licensee within 60 days after the date a payment is due under a contract, the licensee may, in its discretion, cancel the debt management contract if it determines that the plan is no longer suitable for the debtor, the debtor fails to affirmatively communicate to the licensee the debtor’s desire to continue the plan, or the creditors of the debtor refuse to continue accepting payments under the plan.

(6) A licensee shall not contract for, receive, or charge a debtor an amount greater than authorized by this act. A person that violates this subsection, except as the result of an inadvertent clerical or computer error, shall return to the debtor the amount of the payments received from or on behalf of the debtor and not distributed to creditors, and, as a penalty, an amount equal to the amount overcharged.

530 W Allegan Street, 7th Floor
Lansing, MI  48909-7720
877-999-6442

Credit Advisor Logo 3

Schedule a Call Back

Credit Advisor Logo 3

Get Help Now!