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AOC aims to expand pandemic unemployment insurance: what if you need the cash now

Representative Alexandria Ocasio-Cortez will present a bill to extend the benefits of the PUA, which expired in September. The bill would increase the amount of weekly benefits and provide additional weeks of benefits for the self-employed, concert workers and the self-employed cont (iStock)

Representative Alexandria Ocasio-Cortez (DN.Y.) announced at a virtual town hall on Tuesday that it plans to introduce a bill to extend the additional $ 300 in Pandemic Unemployment Assistance (PUA) until early next year.

The Extend the law on unemployment assistance of 2021 would amend the CARES Act, enacted by former President Donald Trump in March 2020. The amendment would change the benefit expiration date from September 6, 2021 to February 2, 2022, retroactively reimbursing unemployment beneficiaries for additional weeks of benefits.

I have been very disappointed on both sides of the aisle that we have just let pandemic unemployment assistance completely expire, when we are clearly not fully recovered from the cost effects of the pandemic.

– The Ocasio-Cortez representative in a virtual town hall

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 states have already ended supplemental unemployment insurance in the event of a pandemic in June 2021. research by economist Michael Stepner of the University of Toronto found that these 22 states saw employment increase by 4.4 percentage points, but the decline in the number of unemployed led to a significant drop in consumer spending.

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Who pays unemployment benefits?

The Department of Labor (DOL) collects taxes from employers, who finance the unemployment insurance program, according to the Center for Budget Policy 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 back 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 an excellent credit rating will be eligible 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 to an average credit card interest rate of 16.30% on all accounts valued at interest, according to the Federal Reserve.

If you 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.

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2. Leverage Your Home Equity With Withdrawal Mortgage Refinance

Home equity is at an all time high, which means that many homeowners may owe much less on their mortgage than the value of their home. 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 their 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 home improvements and pay off debt, but you can use the money however you want.

Start your mortgage refinance by comparing offers on Credible. You can pre-qualify for free with multiple mortgage lenders in minutes.

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 is 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 several private lenders at the same time and choose the best deal for you.

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Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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