Millions of Americans still have outstanding house payments

At the beginning of August, about 32% of Americans still had outstanding housing payments, according to Apartment List. As September draws near, Congress continues to debate on what to include and the next step to take in implementing the next coronavirus relief package.

The impact of the coronavirus pandemic has left many Americans without employment. Even as states gradually reopen, a lot of businesses still struggle to get to pre-COVID levels, hence leaving some Americans without employment. By all implications, many Americans are missing bill payments, especially housing payments.

Of the 32% of households with outstanding payments, 20% owed at least $1,000, leaving the rest with more than $1,000. The numbers could get worse unless Congress intervenes and passes another stimulus bill. According to Morning Consult, there is an estimated additional 5.4 million people who will not be able to pay their bills by August 31, as most of the coronavirus support packages expire on that day.

While renters wait on Congress to intervene soon, Apartment List suggests that tenants with missed payments can negotiate with their landlords to pay at a future date.

“Some owners can defer payments through forbearance plans or even tack payments missed due to financial hardship onto the end of their loan period,” Apartment List stated. “Renters often lack these options and the clarify that accompanies them.”

Kelly Long, a financial planner and member of the American Institute of CPAs’ Consumer Financial Education Advocates, also suggests to those struggling with housing payments to contact their landlords in writing, to have a written agreement. Long also suggested that renters try and work out a repayment plan with clearly stated repayment dates, alongside giving their landlords a partial payment if possible.

“Remember that your landlord needs income too, so approach this with empathy for what you’re asking,” she said. “Make it clear that you’re just paying late rather than asking for free money.”

If Congress finalizes on the next stimulus package payment which is reported to be $2,000, it would be enough “to wipe out unpaid rent bills for 83% of renters who are behind on their payments.” If the stimulus package payment turns out to be $1,200, as the Congressional Republicans are requesting, then only half of the outstanding housing payments will be cleared.