If you are one of the millions of Americans struggling financially because of the coronavirus pandemic, more relief is on the way.
Included in the $ 1.9 trillion stimulus package that is pending in Congress and due to be sanctioned in mid-March are likely to be direct payments of up to $ 1,400, an extension of unemployment checks, more than $ 20 billion in aid for improved rental and food benefits.
The humanitarian aid package comes about a year after the start of a pandemic that has affected many people’s finances, costing them their jobs, forcing them to go into debt, delaying payment of bills and worrying about keeping up with warnings. dump away from your doors.
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Here is a look at the help that those in financial trouble will soon see and how they can think of spending it. (Remember that the exact details of these programs are still being negotiated by lawmakers and may change.)
1. Stimulus checks
As of now, total direct stimulus payments of $ 1,400 would go to individuals with an adjusted gross income of up to $ 75,000, heads of households up to $ 112,500 and married couples up to $ 150,000.
Under the new terms defined by the Senate and agreed by President Joe Biden, payments would decrease the more you earn above those limits, eliminating yourself completely for individuals earning $ 80,000, heads of households with $ 120,000 and couples with $ 160,000.
“Stimulus funds are a unique cash injection,” said Kristen Holt, president and CEO of Greenpath Financial Wellness.
Holt recommends directing that money immediately to any essential needs that have been put in the background, including medication, groceries or car repairs.
2. Unemployment benefits
It appears that unemployment benefits will be extended until September 6, with a federal increase of $ 300 in addition to state benefits. The average weekly state check is $ 346.
Your unemployment checks may or may not be the same as what you earned before you lost your job. Experts recommend making a budget with the new revenue amount. It may be necessary to cut expenses to ensure that you can continue to pay your bills.
If you have any money left over after your fundamentals are covered, direct it to a savings account, said Holt.
You will be grateful to have done this if you are still unemployed when benefits end or if an unexpected expense arises. (To get the best return on your money, keep it in a high-yield savings account. Also make sure that the account is insured by the FDIC, which means that up to $ 250,000 of your deposit is protected against losses.)
Once you have a savings reserve, use the additional money (if any) to pay off any high-interest credit card debt, said Holt. You don’t want to lose your money on interest payments when your budget is already tight.
But as scary as credit card debt is, you won’t want to use all of your money to end it.
“We do not recommend using the cash resources you need to cover medicines and groceries and choose to pay by credit card, especially when many creditors continue to provide assistance with the pandemic,” said Holt. “Contact your bank [or] credit union to determine what assistance is still available and make sure the terms are appropriate. “
3. Rental assistance
About 1 in 5 renters said they did not pay the rent in January, according to an analysis by the Center for Policy and Budgetary Priorities. Nearly 36% of black renters said they were late.
A growing pot of federal money that people can invest in rental debt will help.
All states have already received $ 25 billion in assistance in renting the stimulus package approved in December. Now, this $ 1.9 trillion construction relief bill would set aside another $ 20 billion.
You want to apply for these funds as soon as possible. That way, you can use other help, such as stimulus checks and unemployment insurance, for other accounts. People can obtain financial assistance for up to 18 months of rent.
4. Food benefits
The benefits of the SNAP, or Supplemental Nutritional Assistance Program, can help you with your grocery bills and allow you to use another stimulus aid for other urgent expenses.
Benefits have been increased by 15% for all beneficiaries through June, and the most recent stimulus package is expected to extend the momentum until September.
Under the new rules, an individual could receive up to $ 234 a month. A family of four could receive up to $ 782 by September. In some states, the maximum benefit is even greater. For example, a family of four in Hawaii can receive a monthly benefit of $ 1,440.
The money will be sent to you each month on an EBT card, which works like a debit card. People usually receive the money in less than 30 days, but those with little or no income could receive their benefits in a week.
The eligibility rules may be unstable, but it does not cost to apply them.
Many people miss the benefit because they mistakenly assume they are not eligible or worry about stigma, Carrie R. Welton, director of policies for the defense group The Hope Center for College, Community and Justice, told CNBC last year.
“People are going to bring their own shame to this, but those are taxpayer resources,” said Welton. “This pandemic is nobody’s fault.”
Did you recently apply for rental assistance? If you are willing to discuss your experience for a story, send an email to [email protected]