Senate blocks debt ceiling suspension bill to avert a government shutdown that could delay Social Security
Republicans in the Senate unanimously voted on Monday to block a bill that would suspend the debt ceiling until December 2022, with the federal government funding deadline only a few days away.
If the Democrats can’t find a way to tackle the debt ceiling, the government will shut down and unable to meet its financial obligations by October 18, wrote Treasury Secretary Janet Yellen in a letter to Congress after the vote.
GOP lawmakers, led by Senate minority leader Mitch McConnell, would not support the bill because they oppose it the economic agenda of the Biden administration that would raise taxes on the rich and fund new spending on childcare, health care, and infrastructure.
During the Trump administration, the debt ceiling was suspended three times, according to Treasury Secretary Janet Yellen. The last suspension was decided across party lines in 2019 – it expired in June 2021. The vast majority of the debt currently subject to the debt ceiling was accumulated before President Biden took office.
This is a shared responsibility, and I urge Congress, as in the past, to come together bipartisan to protect the full faith and creditworthiness of the United States.
FAILURE TO INCREASE THE DEBT BLANK MAY DELAY SOCIAL SECURITY AND CHILD TAX LOANS
If Congress breaks the debt limit and the government defaults for the first time in history, it would wreak havoc on the country’s creditworthiness. Yellen wrote in a recent comment for the Wall Street Journal. This could spin the financial markets, which could lead to an economic recession if the problem is not resolved.
Failure to raise or suspend the debt ceiling could also lead to delays in the review of Social Security and child tax credit in October. Yellen said approximately 50 million seniors would be affected, along with millions of American families who rely on child tax credit to make ends meet. Federal employees can also experience delays in paychecks.
If you are among the millions of Americans who depend on timely social security exams, now is a good time to prepare your finances in the event of a government shutdown. Read on to learn more about what to do with your debt obligations, such as: B. Deferral and refinancing. You can compare student loan and mortgage refinance offers on Credible’s online marketplace without compromising your creditworthiness.
MILLION AMERICANS FEAR MISSING DEBT PAYMENTS, NY FED REPORTS
How To Manage Your Debt When Social Security Is Late
Millions of Americans rely on government-funded income programs like Social Security, but these much-needed reviews may be delayed in October if the government is unable to meet its debt obligations.
While there is still a chance that Congress will work together to come up with a solution to this problem, it is wise to take a look at your finances just in case social security reviews are delayed. Here are a few things you can do right now to prepare.
UPDATE OF THE CLEARANCE MORATORIUM: WARREN, PROGRESSIVE IMPLEMENT A LAW THAT AIMED TO EXTEND THE BAN
Your mortgage is probably your greatest debt, and most of the time missing out on a payment is not an option. If you fail to repay your home loan, you risk losing the roof over your head and ruining your creditworthiness in the process.
Fortunately, when you cannot afford a mortgage payment, there are several ways that you can bridge the gap. First, you might consider signing up for mortgage forbearance. This essentially pauses your mortgage payment for a period of time, usually a few months. Interest may accrue during the grace period, so keep in mind that deferring your mortgage can add interest costs over time.
You might also consider mortgage refinancing. With mortgage rates hovering at an unprecedented low, now may be a good time to refinance your home loan. Mortgage refinance can help you lower your monthly payments or even pay off your debt faster.
Use a mortgage calculator to estimate your new monthly payment and compare mortgage refinance rates without affecting your credit score on Credible.
FSA IS PREPARING FOR THE ‘EXAMPLES’ OF RECOVERY OF STUDENT LOAN PAYMENTS AFTER SUPPORT
Student Loan Debt
Federal student loans are currently on administrative moratorium, which means payments are on hold and no interest is charged. The Biden administration has issued a “definitive extension” of the student loan payment hiatus, which will expire in February 2022.
However, private student loans are not covered by the COVID-19 grace period, so you may be penalized for missing a payment. If you have personal student loan debt, you should reach out to your student loan service provider to enroll for Economic Distress Forbearance to temporarily suspend your monthly student loan payments.
You can also refinance your personal student loans while interest rates are near historic lows, according to Credible.
BIDEN HAS NO AUTHORIZATION TO CANCEL DEBTS FROM STUDENTS, SAYS SPEAKER NANCY PELOSI
By refinancing your student loan for a longer term, you can lower your monthly installment. A recent Credible analysis found that borrowers who refinanced with a longer-term loan were able to cut their monthly payments by more than $ 250 – all without increasing the cost of borrowing.
Use Credible’s Student Loan Calculator to see if you can lower your monthly payments by refinancing.
CHUCK SCHUMER, THE MAJORITY LEADER OF THE SENATE, AGAIN REQUESTS TO DISSOLVE STUDENT DEBT
Credit card debt
Making the minimum payment on your credit cards can add exorbitant interest charges over time. However, failing to make a minimum payment can result in late fees and penalty APRs that can add even more to borrowing costs.
If you are unable to If you are making your credit card payment without your Social Security check, you might consider consolidating your debt with a personal loan to lower your monthly payments.
Personal loans offer quick, lump-sum financing that is repaid in fixed monthly installments over a set period of months or years. They come with low, fixed rates compared to the high, floating rates of credit cards. The current average interest rate on a two-year personal loan is 9.58%. according to the Federal Reserve, compared to 16.30% interest-bearing interest on credit card accounts.
Thanks in part to lower interest rates, it may be possible to save money on monthly debt payments while putting your debt on a structured repayment schedule. Credit card holders who can secure a lower interest rate on a personal loan, Credible estimates, can save $ 66 or more on their monthly payments by refinancing.
Find out more about personal loans for debt consolidation on Credible. You can compare quotes from multiple personal lenders to ensure you are getting a good deal.
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