What You Need To Know About Unemployment Changes
So here’s the deal: the extra $600 per week in unemployment assistance is about to run out, and Congress has yet to pass a bill to extend it. At the same time, the federal eviction moratorium is about to expire.
That leaves many She Spends community members in the lurch. Some have reported that their weekly unemployment benefits are about to go from something like $700 to $100, which is impossible to live on in many places.
We talked a bit about the anxiety that is arising from this — and all of the other economic issues we’re facing — in the Facebook group this week, but I wanted to bring the conversation into the newsletter.
Senate Republicans are rumored to be dropping their proposal for a second coronavirus relief package soon, according to the Wall Street Journal. The Journal said that the bill will likely continue the extra unemployment benefits, but at a lower amount than $600 per week.
Instead, they’re proposing a 70% wage replacement benefit, which means that if you were making the federal minimum wage and working 40 hours per week, you’d get something like $203 per week. The legislation is also said to include another direct payment of $1,200 to the same group of people who previously received them.
Armed with this information, there are a few things we can do, both to advocate for our community, and to prepare ourselves, if we will be losing money.
Call Congress
If you have time and energy, use this link to find your Congress member’s phone numbers. If you have a little phone anxiety, know that most of these numbers (sadly) go directly to voicemail.
When you call, you can say something like the following:
“Hi, my name is XX and I live in Congressmember XX’s district. I am calling because I am concerned that the extra pandemic unemployment benefits are about to end, just as the federal eviction moratorium is lifting. I’m deeply concerned about this, and want to advocate for Congressmember XX to extend the eviction moratorium and the extra $600 in pandemic unemployment assistance.”
Feel free to jazz this up: add personal stories or other pieces of legislation you’d like to advocate for (there’s so much to do right now). If you can’t call, you can always email your Congressmember. Just make sure to add a unique subject line so that someone in the office reads the email.
Tap Into Mutual Aid
The mutual aid groups that have popped up in response to the pandemic and economic uncertainty are incredible. Using this link, you can join your local effort. This is good both for folks who have been economically affected by the pandemic and for people who want to help their neighbors out.
If you can, offer donations, whether that’s of your time, your money, or things like clothes and non-perishable foods.
And if you’re in need, now is the time to start seeking out help. Even if you have a little money in the bank, it’s okay to use these networks to stock up on food and other essentials and save that money for big emergencies.
Aunt Bertha
Have you checked out the Aunt Bertha website before? It aggregates free or reduced-cost services like medical care, food, and job training into one place, where you can search based on your zip code.
In a brief search, I found options for nearby sober living programs, bus passes, and food delivery, among a ton of other options. Take some time to check out the website and see if there are any opportunities you can take advantage of.
Paycheck Protection Program
Loans through the Paycheck Protection Program are still available, and an option not only for small businesses but for self-employed people.
The loans will be forgiven if used for payroll, which, if you work for yourself, means you can simply use that money to replace lost income. Read the fine print, and decide whether you can take on the risk of an unlikely scenario where you have to pay some of that loan back at a 1% interest rate.
This is very much a YMMV situation, but it’s important to consider if you’re self-employed. If you are interested in applying, both Lend.io and PayPal have open applications.
Credit Cards
If you have to rely on credit cards to get you through these times, there’s absolutely no shame in doing so. However, there are ways you can minimize issues like high interest rates, payment deadlines, and high credit usage.
Some credit card companies are offering things like fee waivers or forbearance, which can put payments on hold for a month or longer. You’ll have to ask, which means you’ll have to call your credit card company, but it’s certainly worth reaching out.
If the interest rates on your credit cards are especially high, consider a balance transfer, which allows you to move the money you owe to an account with a lower interest rate. You can apply to these on your own, or keep an eye out for offers in the mail, which you may be pre-approved for. As always, check out fees, interest rates, and other fine print.
If you don’t have high credit usage now, but anticipate that you may have to increase your usage going forward, reach out to your credit card company and ask for an increased credit line. This will help keep your credit score on track, even if you're spending more with your card.
Emergency Fund Boost
Finally, take a look at the article I wrote in March on what to do if you don’t have an emergency fund. It has a few more ideas for what you can be doing to save more and spend less during this time period.
