What You Need to Know About Govt. Grants, Loans, and Forbearance to Survive the Pandemic Economy

What You Need to Know About Govt. Grants, Loans, and Forbearance to Survive the Pandemic Economy by Diane Kennedy for The Organic Prepper

GNN Note – Remember, we are the government. The “money” they are handing out came from our labor – currently between $6 and $9 TRILLION – hey brother, can you spare $100,000? That’s what our grandchildren and great-grandchildren now owe just on the latest round of wealth transfer, I mean “stimulus”.

******

We learned a lot from the 2008-2009 Great Recession. As a CPA and real estate investor, I learned that sometimes there was absolutely nothing you can do to save a bad deal. I learned that people often hang on to an old way of life much too long, putting their future in jeopardy. I learned that some people never recover, emotionally, from a financial loss while others bounce back, stronger than ever.

It might be too early to make your walk-away plan, but it’s never too soon to look at your options. Where are you right now?

Your goal right now is to look at how you can have more money coming in and less money going out. There are some government programs and lender programs to help. Remember, though, that these are only temporary fixes. But as a taxpayer, you may be eligible to get this money and it may help you survive the pandemic financially.

(Editor’s Note: I’m well aware that many people have no interest whatsoever in taking help from the government. This being said, you may be eligible for certain programs that have recently been introduced. This money may help you survive if you’ve lost your job or lost income due to the pandemic. Nobody is twisting your arm and forcing you to take this money but if you are struggling to survive financially, here’s what you need to know about these temporary fixes. ~ Daisy)

As we move into a new economy, you’re most likely going to need new strategies. For now, let’s get you through the next couple of months. Then, look at what’s next for you and your family.

Let’s start with the money that comes into your household. Cash flow in.

The Government Economic Stimulus Payment

The economic stimulus payments have begun to be distributed, but it’s an uneven roll-out.

If the IRS doesn’t have your direct deposit information, they’re going to mail a check to the address you used on the last tax return you filed. But it could take a while. They’ve estimated it will take 5 weeks to get all of the checks mailed that they know about.

If you want your payment faster, go to the irs.gov portal. If you haven’t filed 2018 or 2019 because the amount of taxable income you had was under the income threshold ($12,200) click on the “non-filer” button. If you have filed 2018 or 2019 and the IRS doesn’t have your direct deposit information, click on “Get My Money.” This is also the portal you’ll use to find out the status of your payment.

If they can’t find your record, it could be because they think you weren’t due a payment, because you have SSI (social security disability), VA benefits, or because of some glitch in their system. Just keep checking back at irs.gov.

The stimulus payments are not a lot and, at this point, it’s just a one-time thing. But it is something.

Pandemic Unemployment Insurance (PUI)

A more interesting program is the Pandemic Unemployment Insurance (PUI) addition to regular unemployment. Under PUI there are some important changes:

• The waiting period for unemployment is gone,
• The federal government will give you an additional $600 per week on top of what the state gives you.
• The additional $600/week will last from 3/29/2020 -7/25/2020,
• Self-employed persons and people who didn’t work the minimum amount that is normally required for unemployment will qualify,
• General unemployment insurance payments will last for 39 weeks.

The states are responsible for making this happen and most of them have not done so yet. It doesn’t mean you won’t get the money. It just means you have to wait a little longer.

Reduce the cash going out

Now, let’s look at what you can do to reduce the cash going out of your house.

The most common forms of debt payments in the American household are home mortgage, car payments, and credit card payments. There are some options to reduce or delay some of your current payments.

It doesn’t mean less debt. In fact, it usually means more debt because of additional interest costs, But at least you don’t have to pay right now.

Mortgage payments

The term for not paying your mortgage is forbearance. That means your mortgage payments are not currently due. Currently, government-backed loans are mandatory 3-12 months forbearance periods.

Continue Reading / The Organic Prepper >>>