Connect with us
izmir escort

Personal Finances

What Effect Does the CaronaVirus aka The Rona Have on Your Student Loans? + How to Benefit Financially



It is without a doubt that the Coronavirus pandemic is having and will continue to have an effect on the economy and our pockets. If you are one of the millions of people who have student loan debt, then there is good news coming out of this situation. Student loan borrowers who are planning their finances around the uncertainty of the Coronavirus can take advantage of some new benefits.

A new federal law called the CARES Act, which stands for the Coronavirus Aid Relief and Economic Securities Act has provided an automatic suspension of principal and interest payments on federally held student loans, until September 30 2020. This suspension will also count towards any student loan forgiveness program, so there won’t be a lapse there.

There have been many questions surrounding how these suspensions will come into effect, so here is everything you need to know about your student loans and the (CARES) Act:

The Application Process

You will not need to apply to suspend your payments of federal student loan, your federal student loan servicer will suspend all payments without any action necessary from you. You don’t need to contact them or fill out any special application. If you have a federal student loan. Then the suspension will happen automatically. This does not apply to your private student loans. This is only for government issued loans. Keep in mind that there are some federal loans that are owned by commercial lenders, so these loans are not eligible at this time.

Interest Rates and How They Will Be Affected

As far as interest payments go, interest will not accrue on your federal student loans, while your payments are suspended. For your other loans that do not qualify for suspension, interest will continue to accrue.

The Cost of Suspending Your Loans

Unfortunately, during times of crisis, there are many people out trying to scam you. Please be advised that there is no fee, nor will there ever be a fee to suspend your payments. If you are contacted by someone who is asking you to pay a fee, then this is 100%, a scam. Again, there is no action required by you for you to get these payments suspended. If you are contacted by someone please report it to the FTC’s complaint assistant so that they can be aware, and potentially stop these scam artists.

What If Your Loans Don’t Qualify for Suspension?

For those who have federal loans that do not qualify for the suspension or those who have private loans and your finances have been affected negatively by the Coronavirus pandemic, it is important that you reach out to your lender as soon as possible. Most lenders offer income driven repayment plans that you can take advantage of or you can look into getting a forbearance or deferment while you sort out your finances. You should contact your servicer to find out what options are available to you. If you do not know who your federal loan servicer is, please go to the Department of Education’s website  where you can look it up. Everyone is feeling the impact of the Coronavirus so most private lenders will have some type of option to potentially help reduce your payments.

Other Consideration You Should Think About:

  • If you are already enrolled in an income driven repayment plan, but can no longer afford your payments, then you should contact your servicer immediately to report a change in your income and recalculate your monthly payments.
  • If you are currently part of the public service loan forgiveness program, even though your payments are suspended, those months will count towards your program.
  • Please be advised that the Department of Education has stopped the collection of defaulted federal federally owned student loans, including any garnishment of wages, the offset of tax refunds and Social Security benefits. There is nothing you need to do for your federally owned loans. This will take effect automatically. For the other loans that you have that do not qualify for suspension, you should contact your servicer as soon as possible to see what options are available.

If your income has not been affected by the Coronavirus pandemic and you were already making monthly Student Loan payments then I would suggest to save the monthly payments that you would’ve made in a savings account to give you extra cushion during these times. If your income gratefully stays the same then use this money as a jump start on investing, buying an income producing assets or starting a business or sidehustle.

For tips on how to create a product from scratch check out my Product Creation Planner  which will teach you how to create and monetize a product from A-Z

Ash Exantus aka Ash Cash is one of the nation’s top personal finance experts. Dubbed as the Hip-Hop Financial Motivator, he uses a culturally responsive approach in teaching financial literacy. He is also a speaker, and bestselling author of six books. Ash has established himself as a thought leader and trusted voice with Corporate America, Colleges, Churches, and Community based organizations. Ash is best known for helping people maximize their full potentials by giving them the inspiration, tools, and resources needed to live their best lives. For more info on Ash please visit

Personal Finances

5 things to know before child tax credit checks arrive this month



If you’ve got kids and file taxes, chances are your bank account is getting a little boost later this month. As parents probably know by now, the Biden Administration’s American Rescue Plan calls for monthly payments to parents beginning on July 15th.

For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously, children had to be 16 or younger.

Up to half of that credit will be distributed over the final six months of this year, meaning a typical parent of one kid over 6 can expect a $250 payment later this month as the first of six installments of the advanced payment of $1,500. There are also phase-outs on the increased benefits based on income. Use the calculator at the bottom of this article to see how much you should expect on your first check.

Even if you already know where you fall on that calculation, there are still some considerations worth your attention.

Your child tax credit checks probably won’t be checks

As with stimulus payments, the vast majority of eligible Americans won’t have to deposit a check to get their advanced credit. The IRS says direct deposits will be made into the bank account currently on file with the agency. Only those who are not enrolled for direct deposit will get a physical check.

If you’ve already filed your taxes for 2020, there’s nothing for you to do but wait for your payout.

“The IRS encourages people without current bank account information to use the tool to update their information so they can get the payments sooner,” the IRS urged in an online update about the payments.

The agency has launched a payment management portal that allows filers to change their banking information.

You can get a CTC check even if you don’t owe taxes

In past years the child tax credit was partially refundable, meaning you weren’t eligible for the full credit if you didn’t owe any taxes. That’s not the case this year, where the more generous benefits are designed to bridge the gap for lower income families.

In fact, the IRS has set up a portal just to collect the needed information from non-filers who are eligible for the funds. You don’t even need to have a permanent address. Also, credit is not considered income, so the IRS said the check “will not affect your access to government benefits like SSI, SNAP, TANF or WIC.”

The childcare tax credit sure sounds the same as the CTC but it isn’t

The $1.9 trillion American Rescue Plan signed in March also boosted the benefits for people who employ childcare so that they can get to work. Like the child tax credit, this is a previously existing benefit, with improved benefits in 2021.

This year, those who qualify can claim certain expenses of up to $8,000 for one eligible child, or $16,000 for two or more eligible dependents. Both amounts are more than twice that of prior limits. As with the child tax credit, the benefit phases out at higher incomes. Unlike the CTC, these payments cannot be taken in advance, and will only be reflected after setting up your taxes for the year.

There’s still time to opt-out of monthly CTC checks

The checks going out this month are advance payments on the 2021 credit, meaning you are being given part of next year’s refund now. Any cash you take won’t then be applied at tax-filing time, as the full refund had in previous years. That means you’ll get a lower refund or owe a bit more next spring than you would if you opted out of the monthly checks.

For those who feel a big payout next year is preferable to smaller checks in 2021, the IRS has created an opt-out portal. As of last week, it’s too late to sign up to skip the July payment. If you want to bypass the final five advanced payments, you need to do so by August 2nd.

Watch out for your rising income

Use the calculator below to estimate how much you might receive in child tax credit periodic payments beginning on July 15.

For most, the credit is based on your 2020 tax information. If you experienced unemployment last year, or saw a big raise in 2021, you could potentially see your salary move above credit phase-out levels in 2021, meaning you are getting advanced payments that you won’t actually be owed when taxes are filed next year. In theory, this could leave some credit recipients needing to pay back some of the money next year. <iframe width=”560″ height=”315″ src=”” title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture” allowfullscreen></iframe>

Continue Reading

Personal Finances

How the New President Will Impact Your Pockets



It’s Official like a referee with a whistle that there is going to be a new commander in chief in town. As Americans await the change in administration on January 20, 2021 from Donald J Trump to Joe Biden, many are wondering what this change is going to mean for their bottom line.

Being aware of the changes that could come ensures that you can leverage them or plan for any potential hits. Below are a few proposals the President-Elect campaigned on that could potentially affect you and your finance. Ready? Let’s dig into it!

Biden’s Income Taxes Plans

As POTUS, Biden hopes to make many changes to the income tax system, focusing on making it more progressive (the more you earn, the more taxes you pay as a percentage of your income). The Tax Policy Center has further stated that Biden’s proposal will increase taxes by $2.41 trillion within the next decade.

If his policies take effect as pre-planned, in 2022:

  • Households earning between about $50,000 and 90,000 will receive an average tax cut of around $6,700.
  • Higher-income households ($330,000–790,000) will be hit with an average tax increase of $98,000.
  • The top 1% of earners (over $790,000) will also pay an average tax increase of $265,000.

Biden’s Proposals – What We Know

Many of Joe Biden’s income tax reforms are aimed at families; therefore, several single individuals and couples without kids on both the lower and middle-income ranges won’t enjoy all the benefits of these changes.

Child Tax Credit would increase from the current maximum limit of $2,000 to $3,000 for each eligible child under age 17. Biden’s plans also propose an additional $600 bonus credit for under 6 kids and make the credit fully refundable.

His proposals would also increase the Child and Dependent Care Tax Credit to assist families with expenses such as daycare. The current max credit limit is $3,000 ($6,000 for multiple dependents) for qualifying expenses. Senator Biden will raise this limit to $8,000 ($16,000 for multiple dependents) and also increase the maximum reimbursement rate – up to 50% of your qualifying expenses as against the current 35%.

Biden proposes to revive the First-Time Homebuyers Tax Credit, now referred to as the First Down Payment Tax Credit. It was designed during the Great Recession to encourage individuals to purchase homes again. According to his plan, eligible first-time homebuyers will be given up to $15,000 in tax benefits when they buy a home.

On the flip side of these tax benefits, as we mentioned earlier, are tax increases that are aimed at higher-income earners. Here are just a few:

  • For households earning over $400,000, tax rates would rise from 37% to 39.6%.
  • Long-term capital gains and qualifying dividends of households earning over $1 million would be taxed at the normal income tax rate of 39.6%, as against the current 20%.

The Facts

Always ensure that you leverage all your qualifying tax credits and deductions. When it’s time to file your taxes, these new changes (if they take effect) can become confusing. If you have a less complicated tax situation and feel comfortable working with a tax software, then go ahead and get yourself a concise software. However, if you feel that you’re going to take a hit (tax-wise) or you’re being too cautious not to mess anything up with your taxes, then solicit the help of a tax Endorsed Local Provider.


Biden’s Student Loan Forgiveness Plans

Millions of Americans are stuck in the over $1.5 trillion student loan crisis, which has become a huge burden. The Corona Virus outbreak has equally done more harm than good. Biden, during his campaign, like many other presidential aspirants, made promises on student loan forgiveness. And since his election, Biden has reiterated his commitment to cancel some student loan debt, but how and how much remains unclear.


Biden’s Proposal – What We Know

The President-Elect was a supporter of legislation passed in Parliament earlier in 2020 that proposed student loan forgiveness ($10,000 per borrower) as a section of a COVID-19 relief bill. However, this bill wasn’t backed by the Republican-controlled Senate.

Some Democrat leaders are pushing Biden to revoke congressional recommendations by writing an executive order that’ll cancel up to $50,000 per borrower, though not everyone is confident that the president has such powers to execute this. (Well, the Supreme Court can clarify this further.)


The Facts

The government already has in place multiple student loan forgiveness schemes (The Teacher Loan Forgiveness program, The Public Service Loan Forgiveness program, etc.), and none are all good at actual loan forgiveness. This is largely due to the tough requirements. Furthermore, there isn’t any way to know what Biden’s student loan forgiveness proposal will be, whether it’ll become a reality, what the requirements will be, and how effective the program will be.

So, ensure that you have the right plan to tackle your student loan debt – this is the most effective way!


Biden’s Social Security and Retirement Accounts Plans

Any new president will certainly have policies to change Social Security, and the President-Elect isn’t any different. He’s also proposing a few tweaks to 401(K) plans.

Biden’s Proposals – What We Know

Social Security is in peril. The trust funds supporting the program are expected to dry out within the next 15 years. In such a scenario, beneficiaries would only be entitled to 80% of what they’re owed. Biden seeks to fix this and include a few extras too:

Minimum benefit: The average monthly benefit is about $1,400; however, not everyone gets that much. A lot of people receive much less. According to Biden’s proposal, Social Security beneficiaries who’ve worked for a minimum of 30 years will receive a minimum annual benefit of 125% of the poverty level—relatively $15,950 for a single individual.

Increased benefit for older beneficiaries: He also wants to increase beneficiaries’ benefits once they’ve gotten Social Security for at least 20 years. This is aimed at ensuring that long-time retirees can retain more of their savings. He didn’t mention the amount of this increment.

Allow surviving spouses to reap more benefits: Social Security benefits are split into half for couples receiving the benefits when a spouse becomes deceased. Biden’s proposal would let the surviving spouse retain a significant proportion of the benefits, ultimately raising their benefits by 20%.

Of course, all these have to be paid for with taxes! Biden would impose a Social Security payroll tax of 12.4% on earned incomes over $400,000, divided between the employer and employee. Currently, there’s no payroll tax for incomes over $137,700, and for now, individuals earning between $137,700 and $400,000 aren’t taxed.

The Facts

Just remember: Never allow an administrative change in the White House to push you to make a significant mistake with your retirement savings plan. Don’t rely on Social Security for your retirement. Plan and invest like it doesn’t exist because it might not. Additionally, you can fair better building wealth via your tax-advantaged retirement savings plans than any government ever could. And speaking of retirement plans, the President-Elect has a few changes for those as well, including proposing a flat tax credit for contributions to a 401(k) instead of the current tax deduction.


Continue Reading

Personal Finances

Importance Of Different Streams of Income 



Importance Of Different Streams of Income 

by: Rosalyn L

Making money is more important. The way of the world today, you would be unwise to not have money set aside in case of an emergency.

First, multiple streams of income provide a safety net for you. If you only work a 9-to-5, you are dependent on that income alone. So what happens if you become ill? What do you do if you get laid off or fired? How will you bounce back from losing your job?

If you only relied on that one source of income, you may soon realize that you either:

Need to get a new job fast, or
You may get into debt while trying to get yourself afloat.
But if you have multiple streams of income, you can support yourself financially for at least a little while, and it gives you the opportunity to grow those avenues to earn even more money should you wish.

Putting all of your eggs in one basket is never a good thing, and the same goes for trusting your 9-to-5 to always be available to you. Multiple streams of income provide a safety net should you ever find yourself without a stable job or income.

What would you do if you knew you weren’t worried about money?

  • Would you take more vacations?
  • Start a new passion-based business?
  • Or maybe you’d invest in a few up and coming businesses.

Having options is a big deal, especially when it comes to money. Having multiple streams of income means you can do more with your money and spend less time worrying about it. And that is the ultimate reason why it’s important to have them!

Are you ready to create multiple streams of income?

Another reason having different streams of income is Making vs Spending. Think about it; you are spending your time working on them. That, in return, means you’re less likely to spend money.

When you’re busy with a business or side hustle, you don’t have time to shop mindlessly online or spend a lot of money. Instead, your focus is on your hustle. Which means that you can save even more money in the long run, just by having an extra stream of income, even if you don’t make much from it!

Most importantly…

Having multiple streams of income isn’t all about the money. In fact, sometimes people start a side hustle, small business, or freelance because it’s fun and a creative outlet! If your 9-to-5 pays well and isn’t terrible, but isn’t fulfilling you and what you want out of your life, create a new stream of income!

Think about all the changes that extra streams of income can do for your financial situation. If your day job pays for your bills, you can then use your other income to save, invest, and more. You’re able to make decisions that affect your now and your future.

Starting is your best choice!

Continue Reading


Copyright © 2020 MindRight Money Management. All Rights Reserved.

Kestel escort Karabük mutlu son Kağıthane mutlu son Kavak mutlu son İskilip mutlu son İpsala mutlu son Karaman mutlu son Karacabey mutlu son Kıbrıs mutlu son Kadirli mutlu son Kağızman mutlu son