He just passed a $ 1.9 trillion stimulus package. How to use the help money

Many people’s budgets look very different during Covid.

Unemployment benefits and direct payments have replaced the payroll of the general ledger of income.

For many, this aid is still not enough, and food and rental aid, as well as eviction protections, have also been needed to keep families in the fleet.

Fortunately, there is more to this relief along the way. President Joe Biden on Thursday signed a $ 1.9 trillion stimulus package.

Here’s the help you can expect to see soon and how experts recommend you use it better.

Unemployment benefits will run through Sept. 6, with a federal increase of $ 300 in addition to all state benefits. The average weekly state check is around $ 324.

Between the state benefit and the increase, the average laid-off worker will be replaced by about 75% of their wages since working.

Experts recommend that you write a budget with the new amount of revenue. You may need to reduce your expenses to ensure that you can continue to pay your bills.

If you have any cash left over once the basics are covered, head it into a savings account, said Kimberly Palmer, a personal finance expert at NerdWallet.

“Many Americans ran out of their emergency funds during the pandemic and can now start thinking about replenishing them,” Palmer said.

You will be grateful to have done so if you are still unemployed when benefits end or if an unexpected expense arises.

To get the most out of your cash, save your money in a high-yield savings account. Also make sure your account is insured by FDIC, which means up to $ 250,000 of your deposit is protected against loss.

Once you have a savings cushion, use extra money (if any) to pay off any high-interest credit card debt, said Kristen Holt, president and CEO of Greenpath Financial Wellness. You don’t want to lose your money on interest payments when your budget is already low.

However, as daunting as credit card debt can be, make sure that paying it off doesn’t leave you without any savings.

“We would not recommend using the cash resources you need to cover medications and groceries and choosing to pay off a credit card, especially when many lenders continue to provide pandemic aid,” Holt said. “Contact your bank [or] credit union to determine what help is still available and make sure the terms are appropriate. “

Experts also say it is risky to rely on your credit cards for emergencies, as banks can lower your limit at any time.

Full payments of $ 1,400 will go to those with adjusted gross income of up to $ 75,000 for individuals, $ 112,500 for heads of households, and $ 150,000 for married couples filing jointly.

As with previous incentive checks, payments are reduced for those with incomes above these thresholds and are completely eliminated for people with incomes of $ 80,000, heads of households with $ 120,000, and married couples with $ 160,000.

“Stimulus funds are a unique infusion of cash,” Holt said.

As such, it is recommended to immediately direct this cash to any essential needs that have been put behind you, including medications, groceries, or a car repair. Some people may see payments as early as this weekend.

Many areas already had rental assistance funds and it will be through one of these that you apply for the new assistance. In other cases, new programs will be created to disburse the money.

Tenants should contact local housing groups or their representatives or dial their local 211/311 lines to identify programs and learn how to apply, said Emily Benfer, a visiting law professor at Wake Forest University. .

The National Low Income Housing Coalition also has a database of rental assistance programs.

The latest stimulus package also includes a $ 10 billion deposit for homeowners who have been left behind on their mortgages during the pandemic.

Some of the things you can use your money for: your mortgage, utilities, homeowners insurance, or homeowners association fees.

“The legislation also includes a provision whereby the Treasury Department can determine other acceptable uses,” said Bob Broeksmit, president and CEO of the Mortgage Bank Association.

The Treasury Department must distribute funds to state governments within 45 days. “Each state will then determine its process for borrower applications and the distribution of funds,” Broeksmit said.

As with rental assistance, you will need to contact local housing groups or your representatives or dial your local 211/311 lines to identify the programs and learn how to apply for the money.

The benefits of SNAP or the Supplemental Nutrition Assistance Program can help you with grocery bills and allow you to use other incentive grants for other urgent expenses.

Profits have been increased by 15% for all recipients through September 30th.

Under the new rules, a person could get up to $ 234 a month. A family of four could get up to $ 782 by September. In some states, the maximum benefit is even higher. For example, a family of four in Hawaii can receive a monthly benefit of $ 1,440.

Money will be sent to you each month with an EBT card, which works like a debit card. People usually get the money in less than 30 days, but those with little or no income could get their benefits in a week.

Eligibility rules can be malformed, but it’s not bad to enforce them.

Many people lose the benefit because they mistakenly assume they are ineligible or worry about stigma, Carrie R. Welton, policy director for advocacy group The Hope Center for College, Community and Justice, told CNBC in past.

“People will bring their own shame into it, but it’s about resources for taxpayers,” Welton said. “This pandemic is not anyone’s fault.”

Have you recently applied for rental assistance? If you are willing to comment on your experience for a story, email me at [email protected]