What You Need To Know About the Latest COVID-19 Relief Package
The latest COVID-19 relief package has been approved by Congress which means stimulus checks could be on their way to bank accounts as soon as today. Here’s what you need to know:
How much will the checks be, and who is eligible?
Despite on-going negotiations to increase payments to $2,000, what has currently been passed into law is authorization for one-time payments of $600 to single tax filers making up to $75,000 annually, or joint filers making up to $150,000 annually. In addition, the current bill provides $600 for each dependent child under the age of 17.
There is also a modified payment scale for those making over the $75K/$150K thresholds, but under $87,000 a year for a single filer, or $174,000 a year for married couples. This scale reduces the payments by $5 for every $100 of income earned above $75k/$150K.
Unlike the CARES act from April, couples that include an immigrant without a Green Card, and their dependent children, will now qualify for checks. The new bill also ensures that social security recipients receive their checks automatically, vs waiting weeks or months as they did previously.
What other relief does the bill contain?
In addition to the aforementioned checks, the new bill reinstates provisions for $300 unemployment bonus checks that expired earlier this month. These checks are available as additional funds to those who have filed for state unemployment benefits.
Additionally, an existing eviction ban for those unable to pay rent, has been extended through January 31st (note: certain qualifications must be met to be eligible for this protection).
The new bill also includes a $284 Billion infusion of loan funding for the Paycheck Protection Program.
What should you do with the money?
The money will be direct deposited into accounts for most, making it easy to be quickly spent. This is precisely the goal of the relief package – to stimulate the economy. However, a large sum of unexpected money is the perfect opportunity to pay down any debt incurred by financial hardships endured this year.
For those enrolled in CreditAssociates’ debt-relief program, $600 could fund your first few payments and go a lot further in getting you debt-free than simply making a one-time minimum payment on your credit card bill.
If you’d like to speak with one of our certified debt-consultants about how you can best utilize your stimulus money to set you up with financial stability for 2021, give us a call today.
Consultations are completely free and only take about 10 minutes. We can put together a personalized plan just for you that will give you the confidence you need to move forward into financial freedom.