Last year, the Social Security organization enacted strict strategies for saving money. The reason behind these money saving strategies is the budget allotted to Social Security in 2011. According to Commissioner Michael Astrue, the budget was almost a billion dollars, but it was then what the presented requested.The commissioner further stated that this issue has limited the quantity of overtime required to handle the operations smoothly. Hence, they applied strict cost cutting policies.
Some of these changes include: The Elimination of Mailed Statements
Social Security statements were mailed to the workers all year round. To save money, the administration has suspended the whole system of mailing their statements to their employees. According to an estimate, the administration saved $30 million in 2011 and plans to save $ 60 million this year by not mailing statements to workers who are above 25.
The statements were sent in a four page document. You can find some of the information on the internet, such as estimated retirement benefits you can get. However, things that cannot be viewed any more include:
· Benefits for the disabled
· A record of tax payments
· A record of earnings
· Benefits to your family if you pass away
However, there was a plan to continue mailing statements to people over 60, while other age groups would have to read the statements online.
Ceasing Transactions via Paper Payments
People who were eligible for Social Security benefits were paid by paper checks. As of May 2011, the treasury department has ceased this mode of paying the benefits for the new beneficiaries. They will now be paid through direct deposit in:
· A personal bank account
· A union account
· On the Debit MasterCard
An estimate money savings will be around $1 billion in the coming decade. The people who are still getting their payments though paper checks are expected to transfer to direct deposit by March next year.
Early Closing Times
While agency workers will continue to work during standard timings, all Social Security field offices shut down half an hour earlier. Before this procedure was enacted, the timings were 9 am to 4 pm on weekdays, but it is 3:30 pm now. What is the benefit? Michal Astrue says that this will allow the workers to provide public service without burdening the organization with additional overtime expenses.
The Promotion of Online Services
The administration of Social Security requested celebrities like Chubby Checker and Patty Duke to promote online applications for retirement benefits. These celebrities were not paid for the promotion. Additionally, no television time was purchased, and the statements were written by the existing workers at Social Security. An estimate $25-30 million was saved by this strategy.
How Will these Strategies Affect You?
Of course, these money saving strategies will affect you, the tax payer. If the Social Security saves money on its budget, both the tax payers and the beneficiaries will benefit. However, in order to avoid any financial crisis you need to do some effective planning. Unfortunate events like the loss of job can ruin anyone’s financial position.
Social security may levy lower tax rates and pay higher benefits to unemployed people, but what would happen in cases of debt?
Unemployed people can easily incur a debt, especially if they fail to make credit card payments on time. At such times, you will need a credit card debt relief program to get your through. You can firstly negotiate with the bank for lower interest rates. If your previous credit record is good, you may be able to avail this opportunity successfully.
You can try to cover these interest payments with your benefits as much as possible.
If your interest rates are too high, you can always have a balance transfer and switch to a credit card with lower interest rates. However, this transition may also be costly, so choose this option with caution. If this method does not work, you will have to borrow an additional loan to eliminate your debt.Try to avoid this at all costs. For additional help, seek the advice of credit counselors and sign up for debt management to further guide you in an effective credit card debt relief program.
The above article is edited and composed by Roxanne Peterson who writes on credit card debt relief programs.
