It’s been a month and a half since Congress passed a $2.2 trillion economic relief bill.
About 130 million Americans have received stimulus payments from the Internal Revenue Service so far, but millions are still waiting.
The first of several rounds of payments have gone out to eligible recipients via direct deposit, which is the fastest way for the IRS and Treasury Department to get taxpayers their stimulus payments.
The IRS is pushing anyone who hasn’t gotten a payment yet to add their direct deposit banking information to the agency’s ‘Get My Payment’ website by Wednesday. A recent release from the IRS said the agency plans to begin preparing files to send paper checks after 12 p.m. ET Wednesday.
Taxpayers and other eligible recipients who miss the direct deposit deadline may have to wait for a paper check, which the IRS says will begin arriving in late May and into June. About 5 million checks will go out each week, according to a House committee memo.
The IRS has been using 2018 and 2019 tax documents to disburse payments to some, but even people who did not file in those years may be eligible. If you missed filing in 2019, you may need to do so in order to receive payment.
The stimulus payments total $1,200 per person for those who earned $75,000 or less on their last tax return and are prorated for those who earned up to $99,000. Those thresholds are doubled for couples filing jointly, and there is a $500 additional payment per qualifying child.
Managing Your Finances During the Coronavirus
Everyone knows it’s not a great idea to have a lot of debt. However, in unprecedented times like these, even the best ‘savers’ are having a hard time keeping their debt in check.
The coronavirus outbreak has disrupted the entire world. Nothing like this has ever happened in modern life. Businesses have shut down and workers have been laid off or furloughed from their jobs. On April 2, the Labor Department reported 6.6 million people filed for unemployment the week prior — bringing the total to 10 million in just two weeks. Total unemployment claims have now topped 30 million!
If you are in a tough spot and find yourself accumulating debt, don’t beat yourself up right now. These are crazy times and no one can say they were truly prepared.
In the short term, it may be OK to carry debt if you’re other options are limited. You can also take comfort in the fact that you aren’t alone.
A recent survey found that 59% of credit card holders entered the coronavirus pandemic with credit card debt. Most of them had been carrying the debt for over a year.
That said, you should try to manage your bills the best you can so that you can recover once the pandemic has passed. Cut costs now, so you can get out of debt faster down the road.
Make a list. First, make a list of your current debt in order of the most important to least. Your mortgage may be at the top of the list, while credit cards and medical expenses may be a bit farther down.
It’s important to get an accurate picture of what debt you have, the interest rate of each debt and then devise a game plan on how you are going to attack those different debts. Like anything else, if you stay on top of it now, you’ll be better off later. Hang in there! How to Deal with Shady Debt Collectors
If you’ve ever had a debt that goes to collections, you know how it feels when debt collectors won’t stop harassing you until the debt is resolved.
Unfortunately, not enough people know about the Fair Debt Collections Practices Act (FDCPA) which lays out strict rules that debt collectors must follow when contacting you about repayment. There are serious consequences if they don’t.
What Debt Collectors Can and Cannot Do:
1. Call After Hours
Think debt collectors can call you at all hours of the day? Think again. The FDCPA mandates that debt collectors can’t call you after 9:00 p.m. or before 8:00 a.m. unless you tell them that they can. You can give them permission to call after hours if you can’t speak with them during the work day.
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