It’s Official: What You Should Know About Economic Stimulus Check # 2
Recent news coming out of Congress is sure to delight several Americans still struggling with financial woes related to the ongoing coronavirus pandemic. Thanks to the $900 billion economic relief package that made its way through Congress on December 21, 2020, another round of stimulus checks will soon be on their way.
There will be some differences this time compared to the stimulus checks from earlier this year. The amount will be a bit different this time with $600 allocated per eligible person. This $600 check is just half of what many adults received during the first round of stimulus checks this past spring.
Though the amount will be lower, this $600 check will bring much-needed relief to many families that have suffered income loss and unforeseen expenses since the pandemic swept across the globe and caused shutdowns all over the world.
Stimulus Checks May Reach Bank Accounts the Week of December 28, 2020
Stimulus check distribution will be expedited with checks reaching some bank accounts as soon as next week. Eligible dependent children under age 17 will benefit from $600 checks this time around, up from the $500 that they received tied to the CARES Act this past spring.
Other key points for this round of stimulus checks in 2020 include:
- Single persons who earn up to $75,000 will receive the full $600
- Married couples that earn up to a combined $150,000 will receive $1,200
- This round of checks will have the same incomes phaseouts as in the CARES Act with reduced earnings for those making above the thresholds defined for eligibility - checks will be reduced $5 for every $100 of earned income about those thresholds
- Single persons earning over $87,000 will not receive a check, nor will married couples with a combined income over $198,000
Spotloans Can Help Cover Emergency-Related Expenses
Those still struggling with expenses even with the second stimulus check payout can seek loan options both online and from brick-and-mortar financial institutions. There are a variety of emergency loan products available to help cover short-term expenses. When researching these loans, be sure to look at the following:
- Time to fund your loan - At Spotloan, most loans that are approved and accepted by 10 a.m. CT will be funded on the same business day.
- Prepayment penalties - When looking to cover short-term expenses, it is important to understand prepayment penalties. With a Spotloan, approved borrowers receive a three-day cancellation option plus no penalties for early payment.
- Fees - Many lenders charge application fees, late payment fees, etc. With a Spotloan, there are no hidden fees. The only fee we charge is for insufficient check funds when a payment check does not clear the bank.
- Interest rates - If your credit score isn’t the greatest, you may be subject to a high interest rate. Loans such as Spotloans are designed to help you deal with emergencies such as rent, medical bills, car repairs, and expenses related to your job. Spotloans are not intended to solve longer-term credit or other financial needs, and alternative forms of credit may be better for you, including borrowing from a friend or relative, using a credit card cash advance, taking out a personal loan, or using a home equity loan or savings. The maximum Spotloan annual percentage rate (APR) is 490%. The APR expresses the cost of the loan as a percentage of the amount borrowed converted to an annual rate. For example, if you borrow $600 over five months on a bi-weekly payment schedule, you will pay $1,038 in interest.
If you feel that a Spotloan might be right for you, we encourage you to review the Spotloan FAQ to answer any further questions. To apply for a Spotloan, simply click on Get Started at the top of the Spotloan webpage.
