The Limited Times

Now you can see non-English news...

These are the local, state and federal financial aid for the coronavirus

2020-03-23T16:48:44.161Z


If you already have financial problems due to COVID-19, you lost your job and you cannot make your payments, Janet Alvarez, a CNBC contributor, tells you where you can ask for immediate help. Find out.


As the coronavirus pandemic grows stronger in the United States, many Americans are beginning to prepare for the economic impact. Many states are beginning to see increasing claims for unemployment benefits, while seeing sustained losses in the stock market.

Additionally, Treasury Secretary Steven Mnuchin warned of the possibility of unemployment rising, leaving little doubt that we will face some degree of economic turmoil. However, despite the "economic sadness", there are promising signs that social safety nets are being strengthened and plans have been established for American workers.

Congress and the administration of President Donald Trump have enacted various measures and passed economic stimulus bills to help mitigate the plight of many Americans . Local and state governments, charities, and other entities have stepped up their efforts to help those facing financial difficulties.

Here is how you can take personal steps to access these and other resources to survive the financial challenges arising from the coronavirus crisis:

First, take stock of your financial situation

Now is the time to assess your financial situation, including emergency funds, other savings or investments, debts, and your monthly reference budget to determine what resources you will have access to in the event of job loss. Keep in mind that your expenses will likely be reduced if the Coronavirus crisis continues unabated. Shopping malls, bars, theaters, cinemas, beauty salons, and many other places where you could otherwise spend discretionary income are closed, so adjust your monthly budget downward to reflect your new patterns of lower consumption. Plan to strengthen your emergency fund with these savings in mind.

Then understand the local, state and federal assistance programs

Numerous measures have been enacted in recent days to help alleviate the financial stress caused by the pandemic. Become familiar with all the aids, so you know what programs are available to you and how they can help you formulate a preparedness plan, or cope with reduced work hours or unemployment.

  • Congress recently passed the Family Coronavirus Response Act (FFCA), which, among other things, provides compensation for those who must miss work due to COVID-19 , those who care for a family member who is ill with COVID-19, following quarantine ordered by a doctor or government official, or those absent from work to care for a child whose school or daycare is closed. (Currently, these measures only apply to workers in companies with less than 500 employees).
  • The FFCA also provides free coronavirus testing , easier access to SNAP and other supplemental food assistance programs, and strengthens unemployment insurance.
  • As part of its stimulus package, the Trump administration is considering cash payments of up to $ 2,000 for each eligible American, in two installments of $ 1,000. Payments are scheduled for April 6, 2020 and May 15, 2020. These checks will likely be based on your income. Citizens with incomes above a certain earnings threshold may receive lower payments. So these checks are likely to be received by the vast majority of working and middle-class Americans.
  • The Trump administration also temporarily suspended interest payments on federal student loans, retroactive to March 13 (private student loans are not covered). Please note that this only applies to interest, and principal payments are still due.
  • The Department of Housing and Urban Development (HUD) will suspend all foreclosures and evictions of FHA-supported properties for the next sixty days. This also applies to mortgages backed by Freddie Mac and Fannie Mae.
  • A third relief bill is under preparation, proposing payroll tax cuts, low-interest or low-interest loans for small businesses and more.
  • Many states and local governments are also strengthening their safety nets for workers. Visit your state Department of Health and Human Services website for additional resources and information. In many communities, local faith-based organizations, schools, and other entities are offering free meals and other supports.

See also: The measures that large companies are taking against the coronavirus

Create your preparation plan

Create a plan to decide how to use your resources if you lose your job. First, calculate how much you can reasonably expect to receive in unemployment compensation and deduct that amount from your basic budget needs. If that amount doesn't cover your basic needs, consider other resources at your disposal, like checks or government benefits (like those mentioned above). The most important thing to the difficulties caused by the coronavirus is to stay calm.

Finally, consider how long you can stretch your emergency fund or whether you can use other tools, such as personal loans or low-interest credit cards, balance transfers to manage ongoing expenses. Now is the time to apply for increases in the line of credit: as the economy worsens or if you lose your job, it will be more difficult to obtain additional credit. Please note that we are in unknown territory and therefore cannot accurately predict how long you need these resources for. A conservative estimate suggests that it will be a few months, but you may want to plan longer.

Consider this plan if you face layoffs or reduced hours at work:

  • First use paid leave benefits or unemployment insurance.
  • If those don't cover your basic needs budget, then negotiate with your landlord, utility company, mortgage provider, and other institutions for lower payments, reduced interest, forbearance, or any other available assistance.
  • If you still can't cut your monthly outlays to a reasonable level, then consider supplementing with their emergency fund. A good rule of thumb is to plan an unemployment period of up to 6-12 months. Divide your emergency fund by the number of months you expect to be out of a job, and simply withdraw that amount monthly. As an example, if you have a $ 3,000 emergency fund and expect to be out of work for six months, you can withdraw $ 500 a month.
  • If your emergency fund runs out, turn to personal loans or credit cards with the lowest interest rate available. If your family or friends can offer you interest-free loans, this should be your first option.
  • Finally, seek public assistance, such as SNAP for meals or government outlays for lease payments and to supplement other expenses.
  • The preparation plan should also consider your debts and fixed monthly payments. Many financial institutions are willing to waive some fees or grant account extensions, credit card or personal loan payments, or even mortgage payments for those affected by COVID-19. These measures vary by bank and are constantly evolving depending on the pandemic situation. Check your financial institution's website for information and call the helpline to discuss the options available to you.

    Finally, don't neglect your health care needs. In times of crisis, especially those caused by health problems, it is essential to protect yourself and take care of your family. Obey quarantine and take other recommended precautions seriously. Now, while you're working and healthy, it's time to get disability insurance (if you don't have any yet), make sure you have quality health insurance and support options, and create financial plans for your children and loved ones.

    RELATED:

    Coronavirus causes massive business closings and unemployment in Texas

    Kourtney Kardashian's ex takes advantage of coronavirus to earn money

    Video: How entrepreneurs and small businesses can lessen the impact of the coronavirus

    Source: telemundo

    All life articles on 2020-03-23

    You may like

    Business 2024-02-10T05:24:54.842Z

    Trends 24h

    Latest

    © Communities 2019 - Privacy

    The information on this site is from external sources that are not under our control.
    The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.