Dear Editor: A lot of my friends just lost their jobs.
Food service workers, retail workers, those in the odd-job economy and many self-employed workers have been severely affected by the reductions in hours or the total loss of their jobs, with no definitive answer as to what. when they can expect to return to normal hours. Many will struggle to make payments with credit cards, student loans, utilities, or other bills on time, if at all.
In the meantime, credit bureaus will continue to keep records of missed payments and growing debt.
While some of these people will be fine, many of them were already living paycheck to paycheck. A bad credit rating isn’t the first thing they think about, but it could very well be a side effect of this crisis. A low credit score doesn’t just have an impact on access to credit. Sometimes it can also affect a person’s ability to find work and housing. With negative reports during a crisis like this, financial difficulties over the next few months could lead to financial strains for years to come.
As it stands, American consumers now face this risk through no fault of their own. That’s why senators and U.S. officials in Wisconsin should protect consumers from negative credit reports during the pandemic. Congress is expected to suspend negative credit reports for 120 days, giving Wisconsin residents a chance to get back on their feet without long-term financial damage.