As the COVID-19 pandemic continues to affect the financial well-being of millions of Americans, Congress reached an agreement on a new coronavirus stimulus package. On December 27th, President Trump signed a $900 billion federal relief package that included a second round of stimulus checks.
The package delivers up to $600 for eligible single taxpayers and up to $1,200 for married couples who file some pot return. An additional $500 pays for every dependent child. The federal relief bill extends the moratorium on rental evictions through January 31, though it doesn't extend forbearance for federal education loan debt which also expires at the end of January.
Now, under the Biden administration, Congress may think about a intend to send another stimulus check for $1,400 • but that amount is not guaranteed. If you're in need of more money and also you need it now, there is one easy option: personal loans.
How to obtain money fast
If you're struggling financially due to the coronavirus pandemic, taking out unsecured loans could be a better option to using charge cards to cover daily expenses. Here's a closer inspection at just how an unsecured loan can help you to remain afloat during COVID-19.
Personal loans offer flexibility, in that you can use them for various expenses. During the coronavirus pandemic, that might mean everyday expenses, such as utility bills, rent, or groceries.
You can visit PayPasser today to quickly compare rates and terms on unsecured loans which range from $1,000 to $100,000 and find a lender that suits your requirements in mere minutes.
You may also use a personal loan to fund emergency expenses, for example medical bills or perhaps a major car repair, when your emergency fund continues to be depleted. Technically, you can even use personal bank loan proceeds to maintain payments on mortgage debt or student loan debt, if needed.
With student debt, you may be better off exploring forbearance, deferment, or student loan refinancing options first if you're having trouble managing payments. If you want relief for student education loans, in particular, and don't qualify for federal benefits, then you can refinance has given via PayPasser. PayPasser will help you compare rates and discover a lender that best fits your requirements.
Why is a personal bank loan a more sensible choice than the usual charge card?
A credit card could be a convenient way to pay for things, while potentially earning rewards on purchases. But there are several downsides:
- Paying off credit card debt can be tough if you have a high variable interest rate
- Carrying a significant amount of outstanding debt in accordance with your credit limits could negatively impact your credit score
- Paying an invoice late might trigger late fees and result in negative items on your credit rating, which again could damage your FICO score
Having to pay down debt on a credit card may also make reaching your personal finance goals challenging. If a sizable amount of your earnings goes to repay debt every month, that's less money you need to save or simply get ahead of the bills.
Personal loans can offer a lower fixed interest rate if you have a favorable credit history and credit score. And also the monthly payments are predictable, making it simpler to budget to pay for down the debt. Learn more about personal benefits via PayPasser.
Can I use an unsecured loan to consolidate debt?
If one of your financial goals is becoming debt-free, personal loans can help. A debt consolidation reduction loan enables you to combine multiple debts into one, having a single payment per month. Use a personal loan to repay debt, including charge cards, loans, along with other lines of credit.
Debt consolidation may also assist you to pay down debt faster if you're in a position to secure a minimal fixed-interest rate. So when you move from having multiple monthly debt payments to keep up with to simply one, budgeting can become much easier.
If you decide debt consolidation is the right step, it•s vital that you shop around for the best kind of personal loan, rates, and terms. Fortunately, PayPasser makes it easy to check loan rates and firms.
How much personal bank loan should you remove?
If you're considering personal loans to manage debt during the coronavirus pandemic or just cover your day-to-day bills, it's important to consider how much cash you can realistically afford to gain access to.
Taking out too big of a personal bank loan means more debt to repay. But taking out too small of a loan could give you a funding gap to shut. Using a personal bank loan calculator can provide you with an idea of what type of monthly obligations you can expect. Visit PayPasser to find the best personal bank loan rates.
What are some different ways to stretch my budget?
Another coronavirus stimulus bundle may be in the works underneath the incoming Biden administration. In the meantime, you can stretch your budget by:
- Cutting out all nonessential expenses
- Taking advantage of education loan relief options, including forbearance, deferment, or education loan refinancing
- Seeking help through government-sponsored programs, such as SNAP or LIHEAP
- Exploring side hustle ideas and other options for increasing income
If you've tried those things but still need some financial relief, consider looking around for a personal bank loan. You can visit PayPasser to check rates of interest and loan options from multiple lenders. PayPasser's experienced loan officers are available to help answer all your personal bank loan questions.