Unemployment benefits expire in September: Here's how you can save money now
Unemployment benefits are set to expire in September, here's how you can save money. (iStock)
COVID-19 unemployment benefits are set to expire Monday, Sept. 6, 2021, but because of state administrative rules, the last payable week for many receiving the extra $300 check will be Saturday or Sunday.
About 7.5 million Americans will lose pandemic unemployment benefits or receive a reduced check each week after the deadline.
On March 18, 2020, then-President Donald Trump signed the Families First Coronavirus Response Act (FFCRA) to allow state unemployment insurance agencies to give additional funding due to the pandemic. Then, President Joe Biden expanded eligibility requirements for the benefits when he signed The Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2021.
But now, as the last payable week for Pandemic Unemployment Assistance (PUA), Pandemic Emergency Unemployment Compensation (PEUC), and Mixed Earners Unemployment Compensation (MEUC). comes to an end, millions will lose the added $300 in benefits. If these are your last weeks of unemployment benefits, there are several ways to save money on your monthly bills without submitting an unemployment insurance claim. For example, consider refinancing your mortgage to lower rates to save up to hundreds on your monthly mortgage payment. Visit Credible to find your personal mortgage rate and see how much you could save.
Economic impact of ending benefits
For many Americans, the extra federal programs for unemployment benefits have already ended - just 26 states are still paying benefits, according to The Century Foundation.
"What has happened in the 24 states that have successfully cut off pandemic benefits early demonstrates that the looming unemployment cliff will quickly translate into dire economic hardship for millions," Andrew Stettner, The Century Foundation senior fellow. "For example, economist Arindrajit Dube looked at the experience of workers in states cutting off benefits and found that added earnings among the minority who were able to return to work equaled only seven percent of lost benefits while spending dropped by 20% in the month.
This expiration of federal pandemic unemployment compensation occurs as job openings rose to an all-new high of 10.1 million on the last business day of June, according to the Department of Labor, where hires increased to 6.7 million.
If you are set to lose your benefits and looking for new ways to save money, consider refinancing your student loan to reduce monthly payments amid record-low interest rates. Visit Credible to compare multiple lenders at once and pick the one with the best rates for you.
FED CHAIR POWELL SAYS INFLATION SURGE WILL BE TEMPORARY: HERE'S WHAT IT MEANS FOR INTEREST RATES
Top ways to save money
As the pandemic benefits come to an end, millions could be left without income, earning less than they did before the pandemic or revert to receiving regular unemployment benefits. If you are looking for ways to save money, consider the following options:
- Shop around for auto insurance
- Refinance your loans
- Take out a personal loan
Shop for auto insurance: Many drivers assume that if they buy the best insurance rate available to them, it is still the best rate. However, as a driver’s situation changes, including their driving history, age, or even occupation, other companies may have better discounts available for their situation. Visit Credible to compare multiple auto insurance companies at once and find the best premiums.
Refinance your loans: With interest rates near all-time lows, Americans can save money by refinancing their mortgage or student loans and saving money on their monthly payment. Visit Credible to get pre-approved in minutes without affecting your credit score.
GDP REVISED UP FOR Q2 TO 6.6%: WHAT THAT MEANS FOR INTEREST RATES
Take out a personal loan: If Americans are struggling to make their monthly payments, they can consider taking out a student loan while interest rates are low. A personal loan can help meet expenses while borrowers catch up and secure stable employment. Contact Credible to speak to a loan expert and get all your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.