Tamila McDonald

Here’s What The CARES Act Could Mean For You

April 3, 2020 By Tamila McDonald Leave a Comment

With the financial impact of the coronavirus (Covid-19) tearing at the very fabric of our economy, many Americans are in search of relief. The government has finally passed a $2 trillion dollar stimulus bill that will go a long way in helping not only businesses, but individuals and families alike. If you are need of some assistance, here’s what the Coronavirus Aid, Relief, Economic Security (CARES) Act could mean for you.

You Get A Check and You Get A Check and You Get A Check!

The CARES Act will provide economic impact payments to millions of Americans suffering from the impact of the Coronavirus. The amount of the checks will be $1200 for individuals, $2500 for couples and $500 per child. In order to be eligible for the funds, you must have filed your income taxes. If you haven’t filed in 2019, the IRS will use your tax information from 2018.

In order to receive the full amount of the stimulus check, you can’t have an adjusted gross income (AGI) more than $75K per year. A couple can’t have an AGI more than $150K per year. For taxpayers that exceed these limits, the amount will be reduced with a phase out at $99K for individuals and $198K for couples.

Unemployment Boost and Help For Freelancers and Gig Workers

When the unemployment numbers were reported on Thursday, the numbers were over 6 million. With so many people out of work, the CARES Act has provided relief with additional boost of $600 per week to unemployment benefits. This money is available on top of the regular unemployment benefits provided by your state. The boost is available until July 31st, 2020.

There is also expanded eligibility for unemployment for independent contractors, gig workers, part-time and furloughed employees that are unable to work due to the coronavirus. You’ll even be covered if you recently started your job, but due to the pandemic now find yourself out of work.

If you’re under one of these categories, you’ll receive 50% off the unemployment benefits, plus the $600 boost per week.

Small Business Help – Paycheck Protection Program

If you’re running a small business and are in need of help to ensure you can keep your employees. The Payment Protection Program could be an option. The program is available to small businesses with less than 500 employees who were in business prior to Feb 15, 2020 and paid salaries to their employees as well as payroll taxes. This includes payments to independent contractors.

The loans may be used to cover operating expenses, payroll and interest on debts that were incurred prior to Feb 15th, 2020. Applications are being accepted as of today. At the time of this publication, only Bank of America was actually processing these loans.

A small business can borrow as much as 2 months of payroll costs based on last year’s payroll, plus an additional 25%. Payroll is capped at $100K and the overall loan amount can’t exceed $10 million dollars. Even better news, the loans under certain circumstances, can qualify for forgiveness.

Oh, Those Student Loans

Many consumers have found themselves drowning in massive debt due to student loans even before the coronavirus hit. The CARES Act has made provisions for student loan debt as well as well. Student loans owned by the Department of Education have been suspended until September 30th, 2020. This includes wage garnishments and collections. The loans also won’t accrue any interest during the suspension.

Unfortunately, if you have private loans; you’re not eligible for suspension.

What is the biggest benefit that you’ll receive from the CARES Act? Please let us know in the comments below.

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How Do You Develop A Financial Strategy to Stay Out of Debt and Save Money

April 2, 2020 By Tamila McDonald Leave a Comment

Total U.S. household debt hit $14.15 trillion in the fourth quarter of 2019. Based on a population of nearly 330 million, the average owed per person (including infants and children) is a startling $42,879. Many households struggle to get their debt under control. They may have issues making payments and get stuck living paycheck to paycheck. Making their savings goals a reality may seem impossible, leaving them scared and frustrated. If you want to live your best life, developing a financial strategy that keeps you out of debt is a must. If you don’t know where to begin, here are some tips.

Make and Follow a Budget

Having a clear, defined budget is critical if you want to avoid debt. It allows you to outline your expenses and gives you a way to set spending limits. Plus, you can allocate a certain amount to savings, which is a critical part of staying out of debt.

If you don’t have a budget, create one immediately. Tally up your income, list all of your debt payments and living expenses, and add a line item for saving. See how much you have available after covering those necessities.

If your income falls short, you may need to explore ways to cut back. If you have a surplus, then consider how it can be best used. You could bolster your savings, pay down debt, or otherwise find ways to ensure your financial well-being.

Get an Emergency Fund

A buffer is critical if you want to avoid debt. Without an emergency fund, you might have to turn to credit cards or loans to handle the unexpected. That isn’t ideal.

Begin by socking away at least $1,000. Usually, that amount is enough to cover home or auto deductibles, for a start. It can also handle many smaller emergencies, like a flat tire, trip to the doctor, or major appliance failure. You’ll have a safety net that you can use for those costs and replenish much more quickly and easily than if you were repaying a similarly sized debt.

Once you have at least $1,000, you may want to shift your attention to paying down high-interest debt, if you have any. After you square that away, work to stash three to six months of living expenses. Usually, that’s a sufficient enough cushion to weather even a severe financial storm.

Consider Going the Cash-Only Route

One of the benefits of using cash is overspending isn’t an option. The money in your pocket, purse, or wallet is all you have available. Once it’s gone, you can’t spend any more.

The cash-only route allows you to ensure you stick to your budget. You can pull out cash for each of your spending categories, like groceries or gas for your car. Next, place that money in envelopes designated for each purpose. When you make an associated purchase, use cash from the corresponding envelope.

Using cash can make your spending feel more real, essentially increasing your awareness of what you’re handing over and what you’ll have left. You might make smarter choices, as a result, and that can make a big difference long-term.

Plan Ahead for Large Expenses

Your emergency fund can become a sizeable cash stash, so it may be tempting to use that money for large expenses. But that isn’t the purpose of an emergency fund. It’s there to handle the unexpected, not what you know is on the horizon.

Whether you want a new television, will need to replace your roof, or intend to buy a car, make the cost part of your financial plan. You may want to create dedicated savings accounts for each one. That way, you can deposit into them regularly and build up the amount you need.

This approach essentially supports a broader cash-only lifestyle. Avoid making the purchase until you have the full amount, ensuring you don’t need debt to cover the cost. At a minimum, if an expense genuinely can’t wait, you can use what you do have stashed to lower how much you need to cover with debt. That can reduce your long-term financial obligation, making it easier to rid yourself of that debt as quickly as possible.

Do you have tips for developing a financial strategy that can help people stay out of debt? Share them in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Guide to Mortgage Relief During Coronavirus Outbreak

April 1, 2020 By Tamila McDonald Leave a Comment

The coronavirus (COVID-19) outbreak is having a substantial impact on the financial lives of many. According to a March 26, 2020 report, a record 3.3 million unemployment claims came in during a single week. That’s a nearly twelvefold increase from the week prior. This is far above economist forecasts of 1.5 million. Many of those facing layoffs or pay cuts are scrambling to make ends meet. Finding coronavirus mortgage relief during the outbreak is becoming a priority. Luckily, it’s increasingly becoming available.

What is Coronavirus Mortgage Relief?

COVID-19 mortgage relief can include a range of programs that help those affected by the outbreak to manage their housing costs. This includes federally mandated steps and voluntary options created by individual lenders.

Typically, mortgage relief comes in the form of temporarily reduced payments. This also include short-term interest rate reductions, or other loan modifications. It also includes forbearance or payment deferment programs. Which gives homeowners the ability to skip mortgage payments without incurring late fees or having missed payments reported to credit bureaus.

Federal Regulator Guidelines for Coronavirus

Federal regulators – using Fannie Mae and Freddie Mac as vehicles – released guidelines regarding homeowner assistance during the coronavirus disaster. Foreclosure sales and evictions were suspended for 60 days. Homeowners may also be eligible for forbearance plans lasting up to 12 months.

With a forbearance plan, payments can be suspended without the homeowner having to incur penalties. These include late fees or missed payments on their credit reports. Once the forbearance plan is over. The guidance promotes working with the homeowners further to find reasonable mortgage repayment approaches.

Homeowners whose loans are guaranteed by Fannie Mae or Freddie Mac may qualify for the benefits above, depending on their unique situation. Those who use other lenders may find that their options are different. Those above aren’t federally mandated. Instead, they are just guidelines.

Is Coronavirus Mortgage Relief Loan Forgiveness?

No, at this time, the coronavirus mortgage relief programs don’t involve loan forgiveness. Any payments that the homeowner defers will be tacked onto the end of the mortgage repayment period. Effectively extending it according to the number of deferred payments.

Additionally, COVID-10 mortgage relief might allow interest to accrue during the forbearance period. When this occurs. That amount is added to the loan balance and does have to be repaid by the borrower.

Getting COVID-19 Mortgage Relief

If you’re feeling the financial impact of the coronavirus outbreak, you may be eligible for mortgage relief. For example, in California. Homeowners can receive a deferment for a minimum of three months. According to an announcement by Governor Gavin Newsom.

However, what is available to a homeowner depends on multiple factors. As a result, it’s best to contact your lender directly for a few reasons. First, aside from anything mandated by federal or state government entities. They will ultimately determine which options are available and who qualifies for assistance.

Second, even if you qualify, none of the benefits begin automatically. You have to reach out to your lender to confirm you are looking for mortgage relief. Otherwise, they won’t update your account accordingly.

Don’t Just Miss A Payment

Those who simply miss a payment without contacting their lender could have to deal with financial penalties. This could include late fees, missed payments reported on credit reports. As well as, any other ramification outlined in your mortgage agreement. That’s why contacting your lender as soon as you think you may be in trouble is so critical.

Once you reach out, you may need to take additional steps. Verbal confirmation that you are feeling adverse financial effects due to COVID-19 isn’t typically enough over the long-term. However, it could be sufficient to get you protection while the rest of the process unfolds. You may need to submit documentation. Such as proof that you are now on unemployment or that your income has been cut. However, this requirement might not be immediate.

Could More Mortgage Relief Options Become Available?

It’s important to note that the coronavirus situation is still incredibly fluid. New state and federal mandates may arise at any time that alter the mortgage relief landscape. This could spur the creation of new programs. Change requirements for existing options and a number of other outcomes.

Ultimately, homeowners should strive to pay their mortgages if they are able. For those who run into financial trouble. Reach out to your lender and see what programs are available. There may be a mortgage relief plan that will meet your needs. Which makes it easier to navigate these odd and complicated times.

Is the impact of the coronavirus outbreak making it hard for you to pay your mortgage? Have you found relief, or are you planning on asking for mortgage help? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How To Send Your Kids to Summer Camp for Free

March 27, 2020 By Tamila McDonald Leave a Comment

For many children, summer camp is the highlight of their year. They get to spend time with kids their age. They can take part in fun activities. And learn along the way. Plus, summer camps are great for working parents. It also ensures their child is taken care of and entertained when school isn’t in session. But, in many cases, summer camps are expensive and can be unaffordable for a number of households. Luckily, that doesn’t have to be the end of the story. There are ways to send a child to summer camp for free. Here are some options worth exploring.

Ask About Summer Camp Scholarships

Even higher cost summer camps may let some children attend for free. Through their scholarship programs, students who qualify might be eligible for free financial aid that covers the cost of the camp.

Typically, any scholarship funds are given out on a first-come, first-serve basis from the pool of qualified applicants. Additionally, they aren’t always widely advertised. You may need to contact the camp’s director to learn more about any scholarship programs, and it’s wise to do so as soon as possible.

Community Organizations May Offer Summer Camp For Free

Some community organizations, such as the YMCA and the Salvation Army, have tons of low-cost programs, including day camps and overnight camps. Both the Boy Scouts and Girl Scouts operate camps, many of which cost less than commercial versions.

Additionally, many community organizations have financial assistance programs that help alleviate the financial burden of sending a child to camp for low-income households. Eligible families usually qualify for at least a cost reduction according to a sliding scale. However, there can also be some locations or programs that could end up free. Ultimately, it doesn’t hurt to see how low the price can go through community organizations, as you can always make a decision about whether you want to send your child after you find out.

Consider Religious Summer Camps

If you attend services at a church, synagogue, mosque, or another place of worship, you may have access to a summer camp through that organization. Some of them also welcome children from families that aren’t associated with the faith-based community.

Many of them operate religion-oriented programs for kids, such as vacation bible study school. However, they can also focus on other activities. Low-income families may qualify for financial assistance or may be allowed to send their children for free.

Don’t Overlook City and State Programs

Many local and state parks programs operate summer camps every year. Like many community organizations, the cost of the camps tends to be lower than many commercial alternatives. Additionally, lower-income households may be able to send their children for free.

You’ll want to check with your city and state parks and recreation departments to learn about any camps that may be available. If you find a solid option, request financial assistance (if available) as soon as possible. Usually, funds are provided first-come, first-serve, so you want to apply quickly.

Look for Sibling Discounts

If you have more than one child and can’t shoulder the cost to send them all to camp at full price, don’t fret. Some camps off sibling discounts, reducing the cost-per-child. At times, they may even let your one of your children attend for free, especially if your family is larger or they have participated in the camp before.

Sibling discounts are usually standardized and may be advertised on the camp’s website. If you don’t find details, reach out to the camp director. Often, they’ll be able to tell you about any options that may be available.

An Important Note About Summer Camp Discounts

In nearly all of the cases above, eligibility requirements can vary dramatically from one camp to the next. Every camp has the ability to set its own pricing structure and determine who may qualify for aid or discounts. There aren’t necessarily required to follow the same rules across organizations.

Additionally, the qualifications may shift from year to year. Since funding for cost-reductions may be donation-based, the amount of money available can change. As a result, camps may have to adjust their financial aid approach accordingly.

If you want to benefit from a program, apply as early as possible. That way, if you’re eligible, you’re more likely to be able to send your child to summer camp for free.

Do you have any other tips that can help parents save on the cost of summer camp? Let us know in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How to Get Free Medicine from Drug Makers

March 26, 2020 By Tamila McDonald Leave a Comment

On average, Americans spend $1,200 per person on prescription drugs every year. Certain medications are shockingly expensive. For example, Revlimid, a prescription that treats blood cancer, runs around $20,000 for a 30-day supply. To say that most people can’t afford a price tag like that is an understatement. But, even if you can’t shoulder the cost of your medications, that doesn’t mean you have to skip your meds. It is possible to get free medicine from drug makers. If your prescription costs are too high to manage, here’s what you need to know about this option.

Free Medicine Through Patient Assistance Programs

Most major drug manufacturers offer a patient assistance program (PAP). Also known as a pharmaceutical assistance program, it is designed to help individuals who may not be able to afford their medication without some help. While the programs focus mainly on the uninsured and underinsured, others may also qualify.

If you are eligible for the PAP, then you’ll get access to free or low-cost medication from that manufacturer. Precisely how that unfolds varies by program, so you’ll have to go over the details to determine how the drug maker ensures you aren’t stuck with the financial burden.

However, it could involve the drug maker shipping your prescription straight to your door or directly to your doctor. When this occurs, either you or your doctor will need to play your refills well in advance. It can take several weeks for new orders to arrive, so you’ll have to be on top of things to ensure you don’t run out of your meds.

Qualifying for Free Medicine from Drug Manufacturers

Every PAP has different eligibility criteria. Usually, the biggest determining factor is your household’s income. Since a PAP is meant to help those who can’t afford their medication, your household’s income has to be below a particular line. That limit is set by the drug maker, though it’s typically higher than the limit for Medicaid eligibility.

The manufacturer may also take other factors into consideration. For instance, some drug makers also gather information about your assets. You might have to provide details about any investment accounts, for example. When that occurs, even if your income is low, if your investment account balance is healthy, you might not be eligible for the PAP.

Can You Use More Than One PAP?

Generally, yes, you can use more than one PAP at a time. If you have medications made by different companies and meet each manufacturer’s PAP requirements, you may be able to get free prescriptions from both drug makers.

Normally, the only time you couldn’t use multiple PAPs is if they would be covering the same medication. That typically isn’t an issue with drug maker PAPs. However, there are other PAPs that aren’t tied to one manufacturer. They may be more restrictive about using more than one program

Ultimately, it’s always best to read the fine print to find out before you move forward with any PAP. That way, you’ll know if there are any potential issues ahead of time.

The Largest Drug Manufacturer PAPs

Certain PAPs are particularly large. They are run by major drug manufacturers who produce a wide variety of medications. As a result, there may be a significant number of people who could use (and qualify for) assistance, and they have the financial means to alleviate patients of the burden.

Here are just some of the largest drug manufacturer PAPs:

Smaller drug makers may also have their own programs. If you have a medication not made by one of the manufacturers above, consider doing a search. You can use the Medicare PAP finder or use a search engine.

If you go the latter route, do exercise caution. There are PAP scams out there. For example, if you have to pay a fee to apply, it’s a scam.

In most cases, if you head to the manufacturer’s website first, you can access details about its PAP from there, if one’s available. That may be a safer road than using a search engine as you’re starting out on the drug maker’s site.

What to Do Before the PAP Kicks In

Even if you qualify for a PAP, it can take time for your application to process or for you to receive your benefits. If you need medication immediately that you can’t afford, speak with your doctor as soon as possible. They may be able to provide you with some free sample packets to cover the gap, ensuring you can remain on your prescription.

Additionally, your doctor may know about other programs in your area that can help. That way, you can get your medications during the period before the PAP kicks in.

Do you know of any other tips that can help people save on their prescriptions? Tell us about them in the comments below.

Should You Buy Your First Home After Age 60?

March 25, 2020 By Tamila McDonald Leave a Comment

Not everyone becomes a homeowner during their 30s, 40s, or even 50s. Some people wait intentionally while others don’t find themselves in the position to take the leap until they pass age 60. But many of them wonder, “Should you buy your first home after age 60?” If you fall into that category, here’s what you need to know.

You’re Never Too Old to Buy a House

First and foremost, there’s no cutoff age for buying a home. A bank won’t automatically prevent you from getting a loan just because you’ve reached Social Security age or using money from a 401(k) or IRA disbursement to make your payments. As long as you can afford the down payment and mortgage (or the full purchase price outright), your age typically won’t be a factor.

But You Do Want to Consider Mortgage Options Carefully

Unless you’re buying a house with cash, you’re probably going to use a mortgage to make your home purchase. If that’s the case, then you need to weigh your options carefully, especially if you are over the age of 60.

After all, mortgages can last up to 30 years. If you’re 62 today and follow the regular payment schedule, you won’t be done with your mortgage until your 92. That may not be ideal. You’re committing a ton of your retirement savings to that loan, and it may leave your account pretty depleted toward the end.

Deciding Whether Buying Is Right for You

Whenever anyone buys a house, regardless of their age, they have to determine if it’s the best financial move for them. Along with mortgage payments, homes also come with a ton of expenses. Maintenance and upkeep alone can get extremely costly, so it’s important to factor that into the equation. Plus, you need to review how certain recurring expenses may change – like homeowner’s insurance and utilities – as they impact your budget.

But it’s also important to recognize that the overall price isn’t the only factor. You have to decide if owning a home aligns with your ideal retirement vision. A house is a commitment. For some, it gives them a sense of security. They enjoy being homebodies, so having a space that’s entirely theirs is how they envision their golden years. Also, they don’t mind the maintenance, as they find activities like gardening peaceful.

Ensure A House Won’t Be An Anchor

For others, a house is more like an anchor that drags them down. It may make traveling harder or prevent them from moving to a new location with ease at another time. The maintenance is a chore or is generally too difficult to shoulder.

At times, it may make transitioning into an assisted living or care facility cost-prohibitive, even if it would be the best choice. If they can’t sell, they simply might not be able to afford it.

Ultimately, if buying a house is going to give you the life you want without depleting your retirement account, then it can be a good move. But it isn’t a necessity. Renting can give you a sense of freedom, so that’ll be better for some people. In the end, the decision of whether to buy your first home after you pass age 60 is yours, so do what feels right to you.

Do you think it’s wise to wait to buy your first home after age 60? Why or why not? Should your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.