The American Rescue Act created a lot of programs and opportunity for struggling Americans to catch a break during a global pandemic.
Some of these breaks included advanced monthly payments of the child tax credit, emergency food stamps, untaxed unemployment benefits, and even a pause on student loans.
Unfortunately, a lot of these things are ending in 2021, and 2022 may end up being a bit of a struggle or hard to get used to.
Here are 7 changes that may influence your budget for 2022
First is the student loan pause.
While the good news is that it’s been extended from Jan. 31, 2022 until May 1, 2022, the bad news is the pause ends in 2022.
Interest rates will remain at 0% and you will not need to resume payments for another four months.
The pause will apparently save 41 million borrowers $5 billion per month, according to the Department of Education.
Child tax credit payments, at this current moment, do not appear to be continuing in 2022.
In 2021 families were able to receive up to $300 per child per month.
The total families can collect if it isn’t continued would be $1,000 for kids 6-17 and $1,600 for children under 6.
Medicare is going up for those on it.
This means anyone 65 and older, a person with a disability, and anyone with end stage renal disease will be impacted if they’re on Medicare.
Homeowners insurance will likely rise when policies renew for 2022.
This is due to inflation, meaning materials to fix damages to your home in an event of an incident will be more expensive.
The Federal Reserve recently shared that there will be interest rates rising in 2022.
If your interest rates aren’t fixed and your credit card or loan are linked to the Federal Reserve, your interest rates are probably going to rise.
It might be a good idea to switch from a variable rate to a fixed rate for things like mortgages.
Day to day things will become more expensive overall
One major think to understand is that the cost of gas for your car and heating your home is going to be more expensive.
Finally, a lot of name brand foods or types of foods are rising in cost.
This is for things like cereal, chips, and junk food.
Companies like Kraft and General Mills have already said their prices are expected to increase.
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