If you are one of the millions of Americans who are struggling financially due to the coronavirus pandemic, more relief is on the way.
Included in the $ 1.9 billion stimulus package that is working through Congress and is expected to be signed by mid-March is likely to be direct payments of up to $ 1400, an expansion of unemployment checks, more than $ 20 billion in rental assistance and improved food benefits. .
The aid package comes about a year into a pandemic that plagued many people’s finances, cost them their jobs, forced them to incur debt, delayed the payment of bills and were worried about keeping eviction reports before their door. .
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Stimulus checks
From now on, full direct stimulus payments of $ 1400 would be made to individuals with an adjusted gross income of up to $ 75,000, household heads with up to $ 112,500 and married couples who collectively submit up to $ 150,000.
Under new conditions set by the Senate and agreed upon by President Joe Biden, payments will fall the more you earn above the thresholds, phasing out for individuals earning $ 80,000, households with $ 120,000 and couples with $ 160,000 .
“Stimulus funds are a one-time cash introduction,” said Kristen Holt, president and CEO of Greenpath Financial Wellness.
Holt recommends that you apply this cash immediately to all the essential needs of the incinerator, including medicine, groceries or a car repair.
2. Unemployment benefits
It appears that unemployment benefits will be extended until September 6, with a federal boost of $ 300 above state benefits. The average weekly government check is $ 346.
Your unemployment checks may or may not be equal to what you earned before you lost your job. Experts recommend drawing up a budget with your new income. You may need to cut expenses to make sure you can still pay your bills.
If you have cash left over after your basics are covered, then direct it to a savings account, Holt said.
You are thankful that you did so when you are still unemployed when the benefits end or when an unexpected expense arises. (To keep the best return on your cash, keep your money in a high-yield savings account. Also, make sure the account is FDIC-insured, which means that up to $ 250,000 of your deposit is protected against loss.)
Once you have a savings pillow, use extra money (if any) to pay off high-interest credit card debt, Holt said. You do not want to lose your money on interest payments if your budget is already tight.
But as scary as credit card debt can be, you do not want to use all your cash to wipe it out.
“We would not recommend using cash resources you need to cover medicine and groceries and paying for a credit card, especially not if many money providers are still providing pandemic assistance,” Holt said. “Contact the bank [or] credit union to determine what assistance is still available, and to make sure the conditions are appropriate. ‘
3. Rental assistance
About 1 in 5 tenants said they did not meet their rent in January, according to an analysis by the Center for Budget Policy and Priorities. Closer to 36% of black tenants said they were sitting behind.
A growing pot of federal money that people can put in for their arrears of rent will help.
All states have already been allocated $ 25 billion in rental assistance from the stimulus package passed in December. Now this $ 1.9 billion bill for the relief will be set aside for another $ 20 billion.
You want to apply for these funds as soon as possible. This way, you can use other tools, such as stimulus tests and unemployment benefits, for other accounts. People can get up to 18 months rent financial aid.
4. Food benefits
Benefits under SNAP, or the Supplemental Nutrition Assistance Program, can help you with your grocery bills and enable you to use other stimulus assistance for other urgent expenses.
The benefits were increased by 15% for all recipients until June, and the latest stimulus package is expected to boost by September.
Under the new rules, an individual can receive up to $ 234 per month. A family of four can earn as much as $ 782 by September. In some countries, the maximum benefit is even higher. For example, a family of four in Hawaii could receive a monthly benefit of $ 1,440.
The money is sent to you every month with an EBT card, which acts like a debit card. People usually get the money in less than 30 days, but those with little or no income can get their benefits within a week.
Eligible rules can be deceptive, but it does not hurt to apply.
Many people miss the benefit because they mistakenly assume they are ineligible or concerned about the stigma, Carrie R. Welton, director of policy at the advocacy group The Hope Center for College, Community and Justice, told last year CNBC said.
“People will bring their own shame on this, but these are taxpayer sources,” Welton said. “This pandemic is nobody’s to blame.”
Have you recently applied for rental assistance? Send me an email to [email protected] if you are willing to discuss your experience for a story