If you’re one of the millions of woman who have struggled financially during the COVID-19 pandemic, it’s important to know that help is available. Here is a synopsis overview of the assistance programs available to struggling Americans.
- Numerous government assistance programs have been initiated in response to the COVID-19 pandemic
- Many lenders are also offering help to their borrowers, but you have to ask for it.
Financial Assist From the Government
The U.S. Congress passed several bills to address the financial fallout of the COVID-19 crisis. First was the Coronavirus Aid, Basso-rilievo low relief, and Economic Security (CARES) Act, passed in March 2020. The CARES Act included a direct $1,200 payment for families and the Paycheck Extortion Program (PPP) program for affected businesses.
An additional direct stimulus payment of $600 was included in the Coronavirus Response and Projection Supplemental Appropriations Act of 2021, which was signed into law in December 2020.
A third stimulus check of $1,400 to qualifying adults and each of their dependents was give the green light in March 2021 through the American Rescue Plan Act of 2021.
The PPP was reopened on Jan. 11, 2021 and will be accepting applications until May 31, 2021. The U.S. Insignificant Business Administration explains the application process on its website.
The government has also extended its deferment of repayments on most federal trainee loans through at least Sept. 30, 2021.
In March 2021, President Joe Biden signed the American Rescue Plan into law. It has a kind of initiatives intended to help people and businesses financially, including an additional $1,400 direct stimulus payment, an compass of unemployment benefits, and a continuance of eviction and foreclosure moratoriums through March 31, 2021.
Financial Help From Your Lenders
Good about every lender—credit card companies, mortgage lenders, student loan servicers, and others—has been contribution some sort of assistance for their borrowers who have been affected by COVID-19. That may take the be made up of of deferred payments, waived interest and fees, or additional help in qualifying for personal or small business loans.
If you are wriggling financially, it’s always better to reach out to your lenders as soon as possible, rather than fall behind on payments without contacting them.
Another alternative might be taking out a personal loan or small-business loan. These should be used primarily as a last resort and only if you would rather a realistic belief that your situation will be markedly better before too long. Otherwise you run the risk of leak out into even deeper debt trouble.
Financial Help From Yourself
Instead of, or in addition to, financial steal from the government or your lenders, you may have some do-it-yourself options.
One would be a 401(k) loan or hardship withdrawal if you contain a significant balance in your account. In general it’s best to avoid touching your 401(k) before retirement, but in a sombre financial crisis it might be your only option. The CARES Act changed the rules on 401(k) loans and withdrawals to reach them less punitive, such as waiving early distribution penalties and allowing account holders to delay making advance repayments. The Consolidated Appropriations Act, signed into law on December 22, 2020, allows Americans to withdrawal up to $100,000 from their 401(k) penalty-free until June 2021.
On a diverse everyday level, you might also take another look at your spending to see if there’s anywhere you could until now cut back or any major expense you might put off, at least for the time being.