US financial news summary | 22 June 2023
Headlines | Thursday, 22 June 2023
- Fed Chair Jerome Powell testifies before Congress
- Initial unemployment claims remained steady at 262,000 last week
- Retail sales unexpectedly rise 0.3% in May
- Federal Reserve held rates steady in June, but signaled two more rate hikes in 2023
- The Consumer Price Index tracks a 0.1 percent increase in prices in May
Read more from AS USA:
Failing to pay your credit card debt can have serious implications. Late payment fees and increased interest rates are common penalties, making your debt more expensive. Your credit score will be negatively impacted, affecting your ability to obtain credit in the future.
These issues pale in comparison to the ultimate consequence of financial ruin.
US credit card debt
Credit cards are widely used in the US for daily expenses, online shopping, and convenience. The ease of obtaining and using credit cards contributes to their popularity. A major problem with them is the culture of consumerism and a desire for instant gratification, leading many individuals to rely on credit cards for purchases beyond their immediate financial means.
Simply put, recertification is a simplified process to renew SNAP benefits similar to how beneficiaries applied for the program in the first place. Recertification is required periodically to make sure that you are still eligible for SNAP benefits.
Any changes to your situation, be it family or financial, must be reported to the agency that is providing your SNAP benefits. The amount of time you have to inform the state agency of any change varies, but generally you are given a maximum of 10 days from the change or within 10 days after the end of the month in which the changes happened. Failure to report the change could result in loss of assistance, being banned from using the program even large fines or prison.
Formerly known as the Food Stamp Program, SNAP plays a significant role in combating hunger and improving nutrition for vulnerable populations.
Eligibility for SNAP benefits is primarily based on income and household size. Generally, households with gross incomes at or below 130% of the federal poverty level (FPL) qualify for assistance.
There are over 68 million Americans that receive Social Security payments every month, the vast majority, 51 million, are receiving retirement benefits. The amount that each recipient receives is specific to them and is based on a number of factors, including the age when the recipient begins to claim benefits and earnings history.
How are Social Security payments calculated?
The SSA bases the Social Security entitlement on data gathered throughout your working life which is formed into an earnings record. This information is than used, with a three-part process, to calculate the size of payments.
Three-plus years since the student loan moratorium was put into place it will officially be coming to a conclusion at the end of summer. Here’s what to know
The Supplemental Nutrition Assistance program is designed to provide financial assistance for low-income households. The monthly payments are a supplement for the household food budget to ensure that recipients can afford to purchase healthy food.
Low-income Californian households can be eligible to receive monthly payments to cover the cost of food if they earn under a certain threshold.
As this report tells us, California has no asset or resource limit for SNAP benefits, but it does have eligibility requirements on both gross and net income.
Your car could be worth much less than your loan
Motorists who took on car loans at high interest rates could face headaches down the road as car values pull back in an economic slowdown.
The car you plan to trade in- particularly if you bought a used car- could be worth far less than you'd imagine. And lenders are growing more concerned about people falling behind in their car payments, especially if that car drops significantly in value.
Negative equity, or owing more on your car than it's worth, is building, particularly in used cars bought by subprime borrowers.
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The US has a large number of economic programs dedicated to helping the sector of the population that needs it most; that is, those with limited resources.
Many of these economic relief programs are federal, while others are administered at the state level. Such is the case of the Guaranteed Basic Income Programs, which are available in certain states of the nation. Through these, it is possible to offer monthly payments of $500 to low-income families.
Find out if your state offers this assistance and who are qualified to receive it.
Lawmakers urge FTC to finalize new consumer protections for car buyers
A group of 17 Democratic legislators have urged the Federal Trade Commission to finalize new consumer protections for car buyers despite objections from auto dealers who argue the rules would actually raise the cost of buying a car.
The FTC in June 2022 proposed banning fees and bait-and-switch advertising tactics and requiring dealers to make key disclosures to consumers, including providing a true "offering price" and being transparent about optional add-on fees. The FTC said the rules "would save consumers time and money and help ensure a level playing field for honest dealers.”