Third Stimulus Check Update - Increase Your Credit Score + Fresh Start!

TL;DR

Learn how to use the third stimulus check to settle debts and potentially file for bankruptcy, making a long-term impact on personal finances.

Transcript

• Hey everybody, John Skiba here. And in this video, I'm going to share with you a stimulus check update. We're dealing with the third stimulus check now, and how you can use those funds to make a life-changing difference as it comes to your personal finances. But if this is your first time here to my YouTube channel, go ahead and click subscribe, ... Read More

Key Insights

• 🧍 The third stimulus check offers a chance to address long-standing debt issues and make a positive impact on personal finances.
• 🥶 Debt settlement can be an effective way to settle accounts for less than the full amount owed, especially for older debts or debts purchased by junk debt buyers.
• 💳 Settling medical bills can lead to a credit score increase, while paying off credit card balances below 30% or even 10% can have a substantial positive impact on credit scores.
• 🤱 Bankruptcy is an option for those in dire situations, and using the stimulus funds for legal fees can help in preparing for the bankruptcy process.

Questions & Answers

Q: How can the third stimulus check be used to settle debts?

Debt settlement is the process of contacting creditors and offering a reduced payment. With up to $7,000 available, it can significantly impact the settlement process, especially for older debts or debts purchased by junk debt buyers.

Q: Can settling medical bills help improve credit scores?

Yes, settling medical bills requires the deletion of the line from the credit report, which can have a substantial positive impact on overall credit scores.

Q: Can paying off credit cards with the stimulus funds improve credit scores?

Absolutely. Getting credit card balances below 30% or even 10% of the available credit can result in a significant increase in credit scores, potentially opening doors to better financial opportunities.

Q: Why were bankruptcy filings low in 2020 despite the pandemic?

The stimulus checks provided people with the means to settle their accounts and avoid bankruptcy. Many used these funds for debt settlement instead of filing for bankruptcy, resulting in a low number of filings.

Summary & Key Takeaways

• The third stimulus check provides $1,400 per individual, $2,800 per married couple, and $1,400 per dependent, making a family of five eligible for up to $7,000.

• Two ways to utilize the funds for long-term financial improvement are debt settlement and potentially filing for bankruptcy.

• Debt settlement can be done by offering to pay less than what is owed to creditors, resulting in the possibility of settling accounts for less than 20 cents on the dollar. Settling medical bills can also lead to a credit score increase.

• Filing for bankruptcy, although typically avoided, can be an option for those in dire situations. Using the stimulus funds for legal fees can help in preparing for the bankruptcy process.