AOC aims to expand UI in the event of a pandemic: what if you need the cash now
Representative Alexandria Ocasio-Cortez (DN.Y.) announced at a virtual town hall on Tuesday that she plans to introduce a bill to extend the additional $ 300 in Pandemic Unemployment Assistance (PUA) until ‘early next year.
The 2021 Unemployment Assistance Extension Law would amend the CARES law, promulgated by former President Donald Trump in March 2020. The amendment would change the expiration date of benefits from September 6, 2021 to February 2, 2022, retroactively reimbursing unemployment. beneficiaries of additional weeks of benefits.
I have been very disappointed on both sides of the aisle that we have just let the pandemic unemployment assistance completely expire, when we are clearly not fully recovered from the cost effects of the pandemic.
Read on to learn more about the congressman’s latest coronavirus assistance bill and see your options if you need the money to help yourself in the meantime if regular unemployment benefits aren’t. sufficient. There are several options for borrowing money if you need COVID-19 assistance, including personal loans, cash mortgage refinancing, and student loan refinancing.
You can compare a variety of financial products in Credible’s online marketplace to make sure you’re getting the lowest possible interest rate for your situation.
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Will pandemic unemployment be prolonged?
It is uncertain whether the Democratic MP’s latest bill extending additional UI benefits will pass through Congress.
But with the hindsight of GOP lawmakers who blame the extended benefits program for dissuading people from returning to work during the public health emergency, the bill is likely to run into roadblocks. Ocasio-Cortez appears to be aware of this, adding that she “just couldn’t allow this to happen without at least trying.”
Almost half of the states have already ended supplemental unemployment insurance in the event of a pandemic in June 2021. Recent research by University of Toronto economist Michael Stepner found that these 22 states have saw employment increase by 4.4 percentage points, but falling unemployment rates led to a significant drop in consumption. expenses.
HOW TO MEET THE PERSONAL LOAN ELIGIBILITY REQUIREMENTS
Who pays unemployment benefits?
The Department of Labor (DOL) collects taxes from employers, who fund the unemployment insurance program, according to the Center on Budget Policies and Priorities (CBPP). The federal government passes the funds to the states, and the states oversee the payment of unemployment benefits.
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3 options for quick cash if you need cash now
Although the unemployment rate is near its lowest point since the start of the pandemic in March 2020, jobless claims rose slightly last week, according to the DOL. Without additional unemployment benefits, some Americans may be looking for ways to pay for their living expenses. Here are some ways to achieve economic security and to borrow money wisely.
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1. Take out an unsecured personal loan
Personal loans offer a lump sum of cash that you pay off in fixed monthly installments over a set period, usually a few years. They are usually unsecured, which means they do not require collateral, so lenders determine eligibility based on the creditworthiness of the borrowers.
The interest rates for personal loans vary depending on several factors, such as the credit rating of the borrower, the length of the loan, and the amount of the loan. Borrowers with excellent credit scores will qualify for the lowest interest rates available.
Personal loans can be a smart alternative to revolving credit card debt with lower fixed interest rates. The average interest rate on a two-year personal loan was 9.58% in the second quarter of 2021, compared with an average credit card interest rate of 16.30% on all accounts rated with interest, according to the Federal Reserve.
If you do decide to borrow a personal loan, be sure to compare the interest rates of several lenders to ensure you are getting the lowest possible rate for your situation. You can compare personal loan rates without affecting your credit score on Credible, so you know you are getting a good deal before you apply.
THE FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION (FPUC) SHOULD EXPIRE SOON
2. Leverage Your Home Equity With Withdrawal Mortgage Refinance
Home equity is at an all time high, which means many homeowners may owe much less on their mortgage than their home’s value. If you are a homeowner, you may be able to tap into that equity with a cash refinance.
Mortgage cash refinancing involves taking out a new, larger mortgage to pay off your current mortgage, pocketing the difference as a lump sum. With mortgage refinancing rates still near all-time lows, maybe now is the time to get a lower mortgage rate while gaining equity in your home.
Homeowners often use cash-out mortgage refinancing to make improvements to their home and pay off debt, but you can use the money however you want.
PANDEMIC EMERGENCY UNEMPLOYMENT BENEFITS EXPIRE IN SEPTEMBER
3. Reduce your monthly student loan payments by refinancing
Refinancing a student loan is a popular way for college graduates to get a lower interest rate on their student loan debt. You may be able to lower your monthly payments, get out of debt faster, and even save money in interest over time.
Qualified borrowers who refinanced a longer term loan on Credible were able to save over $ 250 on average on their monthly student loan payments, all without increasing the overall cost of borrowing. See if refinancing a student loan is right for you using this calculator from Credible.
It’s important to note that refinancing your federal student loans to a private loan will make you ineligible for federal protections such as income-tested repayment plans, administrative forbearance, and student loan cancellation programs. If you have private student loans, however, you have nothing to lose by refinancing at a lower rate.
Lock in a lower student loan rate by shopping on Credible. You can compare multiple private lenders at once and choose the deal that’s right for you.
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