Time Urgent Message!
The government relief deposits have started going out now. The $1,400 funds are being released in batches.
If you owe money to a collection company for an unpaid bill, the collector is allowed to seek a garnishment of your $1,400 Covid Relief check. The previous stimulus checks could not be garnished; but for this round, it is legal. There is no protection this time to prevent a seizure or garnishment.
If you owe your bank overdraft fees, the bank is allowed to automatically collect from your government deposited funds.
If your money is coming by check, then you can protect it from being seized by cashing the check instead of depositing it.
If your money is coming by direct deposit, you should keep a vigilant watch. If you need money to pay rent, a mortgage, your electric or cell phone bill, or to buy food, then you want to withdraw that money and take care of those necessities before a collector grabs it.
If you don’t have collectors or back-owed debt, then you can breathe a sigh of relief. My advice is to use the money for its intended purpose: TAKE CARE OF YOUR BILLS. Pay off credit cards. Pay off your car loan early. Pay whatever account you are being charged high interest on. Fill up your gas tank and get the oil change.
If you have credit card balances, do not be foolish and spend the money on new shoes, clothes, fun toys, and other non-necessities. Don’t blow your money!
Don’t use the money to go into debt! In other words, don’t use it as a down payment on a car or other expensive item that you will end up paying interest on. Don’t give it to a scammer, because they are out thick as thieves right now.
If you have outstanding collections, you can use the money to negotiate a settlement. Make sure you get the offer in writing, make sure the creditor agrees to remove the negative item from your credit file upon the receipt of funds. To learn how to negotiate, including scripts on what to say, read Chapters 15 and 16 in Repair Your Credit Like the Pros: How credit attorneys and certified consultants legally delete bad credit and restore your good name. It is available here.
Please pass this urgent message onto to others who might need this information. Thank you and have a lovely day!