State faces long road to recovery
UConn center says Connecticut could take decade to shake off virus’ impact
Connecticut likely will struggle for a decade or longer to undo the economic damage created by the coronavirus pandemic, a University of Connecticut thinktank warned Friday.
In its first long-term forecast, the Connecticut Center for Economic Analysis also warned the state was headed for financial trouble even before the pandemic struck, having failed for more than a decade to make vital investments in information technology.
“It looks bad,” economist Fred V. Carstensen, the center’s director, and senior research fellow Peter Gunther wrote in their report. “Even an optimistic scenario argues recovery will be slow and painful; a more realistic assessment sees Connecticut struggling to recover in employment, real output, personal income, and state revenues out past 2030.
When the pandemic’s outbreak in March and April eliminated 277,000 jobs, many state officials still hoped for an economic recovery within the calendar year.
But the lack of a proven vaccine, coupled with several economic weaknesses that pre-dated the pandemic, has left Connecticut vulnerable, the report states.
Several projections, including a recent analysis from The Institute for Health Metrics and Evaluation at the University of Washington, project COVID-19 could kill at least one out of every thousand Americans and cause permanent health damage to another four per 1,000.
“To state the obvious, the dead do not work and disabled may be less productive,” Carstensen and Gunther wrote.
Further complicating matters, Connecticut still had not recovered all of the nearly 117,000 jobs lost in the Great Recession — which ran from late 2007 through mid-2009 — when the
aware that some of the rules surrounding credit have changed, and keep in mind that the decisions they make to survive these tough times will impact their financial future.
For one thing, checking a credit report has gotten easier. As part of a massive relief package passed by Congress, known as the CARES Act, consumers can check their credit report from the three credit reporting agencies weekly for free online at annualcreditreport.com. This expanded access is available through April 2021.
Additionally, consumers who reached some sort of relief agreement with their lender due to COVID-19 — such as forbearance, reduced payment or other arrangement — generally should not see their credit score worsen.
The CARES act requires that accounts that were in good standing before any COVID-related relief accommodation was made will remain in good standing. Those that were delinquent cannot sink further but can be made current. This rule stays in place until 90 days after the national emergency for COVID-19 ends.
However, if you do not strike a relief agreement of some form, any late payments or other negative steps will still be reflected on your credit report.
If you are in a relief agreement but feel it has been reported improperly, reach out to your lender and the credit agencies.
Consumers who are struggling should seek help from their lender as soon as possible.
TransUnion estimates about 10 percent of consumers are using at least one form of relief accommodation already. But experts say many people who are eligible for help have not sought assistance yet.
Consumer finance and credit experts urge people to get help where they can. Make sure to ask questions about the terms, such as how long the assistance will last, if interest will be accrued, or if late fees may still apply. And how your agreement will be reported to the national credit reporting agencies.
Consider adding a statement to your credit report to explain any negative activity. A COVID-related job loss or illness could help explain a period of late payments.
Any assistance you get will not last forever.
Stabilize your household’s finances as much as possible with relief opportunities and then reassess to come up with a longer-term plan. If you have run out the clock on a relief agreement, seek an extension if needed. If you need further help, consider talking to a nonprofit credit counselor. The Financial Planning Association and many other certified financial planner organizations are offering free assistance to those impacted by COVID-19 as well.
Beverly Anderson, President of Global Consumer Solutions at Equifax, said that everyone’s credit situation is unique. All the same, she reminds consumers of the basics for healthy credit: establish and maintain responsible credit habits, like paying bills on time; pay off debts as quickly as possible; apply for credit sparingly and keep your balances well below their limits.