Does Credit Card Debt Affect Stimulus Check

However if you have credit card debt and particularly if a debt collector is involved you could run into problems getting your stimulus check.

Does credit card debt affect stimulus check. The cares act actually protects your stimulus funds from certain types of collections but not all. You may still be waiting. If you have a court judgment against you your stimulus check could be taken.

Don t use your stimulus check to pay off credit card debt says this financial expert stimulus checks are starting to hit bank accounts this week. Congress rejected a legislative effort to prevent negative credit reporting during the pandemic so if you skip or miss payments your credit score could take a hit. You can redirect your stimulus payment to a prepaid card or bank account at a smaller bank or credit union where creditors are less likely to service garnishment orders.

Tiffany the budgetnista aliche advises most. Opt for a check instead of direct deposit and then cash the check. Several big banks have promised not to use stimulus checks in this way but debt collectors have made no such promises.

As a general rule debt collectors are prohibited from garnishing payments from the government. Debt collectors could go after your stimulus check. With uncertainty about whether a second round of stimulus checks will materialize or if the augmented federal unemployment benefits will be extended beyond july credit cards could offer a vital.

Stay calm do your research and find a solution that works for you. You may have received your payment. The cares act the 2 trillion stimulus package to help provide financial relief.