At Multipli, we’re hard at work trying to come up with solutions for our members who are experiencing employment disruption because of the COVID-19 pandemic; please stay in contact with us for more information, especially if you’re struggling to make any kind of loan payment. Remember, we cannot work with you if you do not talk to us. When our loan officers or collectors reach out, let us know what’s going on so we can work together to come up with a solution. 

With so much uncertainty surrounding employment for many of us right now, here are some options to think through if you find yourself with a drop or pause in income. Some of these options are loan options; even with our lobbies temporarily closed to keep you safe, we are still able to take care of all of your banking needs; just give us a call at (417) 865-3912 if you have any questions.

Essentials Only
Before you tap any kind of emergency fund or borrow any money to get through a period of employment interruption, are there any unnecessary expenses to cut out of your budget? Take a hard look at your spending and cut out anything that isn’t essential. From your grocery bill to media subscription services, is there anything you can temporarily cut out to help make up for a loss in income or to cover unexpected expenses?

Emergency Fund
Now might be the time to tap into your emergency fund if you have a lapse in income or unexpected expenses. Whether it’s time off of work or unexpected medical bills, you worked hard to build up your emergency fund! Don’t be afraid to tap into it in moments like this. Once you’re back on your feet, develop a plan to get your emergency fund replenished. For tips on how much you should work towards for an emergency fund, click here.

Multipli Credit Card
If temporarily charging some bills to a credit card is going to make the most sense for you to get through a rough spot, be sure it’s a low-interest card like Multipli’s. With a low interest rate, if you need to carry a balance for a couple of months, our credit card might be a good option. Additionally, our card offers no balance transfer fees or cash advance fees. Click here for more info.

HELOCs
As interest rates plummet, if you have equity in your home, a Home Equity Line of Credit (HELOC) is another option to consider. Essentially, if your home is worth more than what you owe on your mortgage, a HELOC allows you to borrow money against that equity. Interest rates are typically lower than an unsecured personal loan (a loan without any collateral), so if you feel like you need to borrow, this may be a lower-cost option.

Personal Loans
Personal loans are unsecured loans, meaning that they are not tied to any collateral. Interest rates on personal loans are based on things like your credit score and your debt-to-income ratio. Because they are not tied to any collateral, interest rates are typically higher than a HELOC and are only a good option for smaller loan needs. 

Roth IRA contributions
If you contribute to a Roth IRA, remember that you can withdraw your contributions at any time without penalty or tax liability. However, this applies only to what you contributed; penalties will be assessed for withdrawing any earnings before an age of 59.5. Remember, the rules are different with traditional IRAs. Regardless, pulling money out of your IRA can have a drastic impact on the nest egg you have worked so hard to build; make sure to talk through your options with a financial advisor who has fiduciary responsibility, someone who will put your best interests above their own profits. 

401(k) loans/hardship withdrawals
Taking a loan from your 401(k) or covering qualifying expenses with a hardship withdrawal is another option. Just remember, your 401(k) is not an emergency savings fund; it’s your retirement fund. Taking money from it now, even temporarily, could have a drastic impact on the money you’re trying to save for retirement. Again, any time you’re considering pulling money from a retirement account, be sure you’re considering all tax implications and any penalties that may be assessed by speaking with a trusted financial advisor. 

There’s a lot of unknown right now. What we do know is that the entire credit union movement is based on people helping people. At Multipli, we’re going to do everything we can to stay by your side every step of the way. Give us a call and let us know how we can help.