Four months ago, Congress approved supplemental unemployment benefits of $600 per week for workers who lost their jobs due to the pandemic. This week marks the end of those payments. 

Congress is expected to come back into session this week and are anticipated to debate the extension of the supplemental benefits. Currently, 30 million people in the United States are relying on the Funds to supplement lost wages and keep their households afloat. 

Housing

Many are beginning to fear that a tidal wave of evictions and defaults are looming. The assistance from Congress and leniency from lenders offering forbearances and deferred payments are the glue holding the financial system together. Once these additional payments stop, the flood gates of evictions, foreclosures and repossessions are expected to open. 

Financial Problems

According to TransUnion, 3 million auto loans and 15 million credit card accounts are involved in some sort of program to let consumers skip or make partial payments. According to Black Knight, 9% of all mortgages are currently in forbearance plans. Property management company, Zego, processes millions of rent payments each month. They have reported a 30% increase of tenants putting rent on credit cards from March to April. An additional 20% increase in using credit to pay for housing took place from April to May. 

For more information contact your Modesto bankruptcy attorney at (209) 438-4990.

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