How to Get A Payday Loan On Social Security (2018)
There is a significant amount of people in the United States who have inadequate or no income. They get financial assistance from the government under its ...
Interest Free Social Security Loans. As an example: A person starts receiving benefits at the age of 62 and then decides to start over at the age of 70. If in that 8-year period, the person received $1300 a month that would equate to $124,800 over that period. If they earned 8% interest each year on that amount,...
Needless to say, this cost the government a good bit of money. The Center for Retirement Research estimated that folks using this interest-free loan strategy were costing Social Security between $5.5 billion and $8.7 billion per year. As a result, the Social Security Administration closed this loophole in 2010.
A loan is anything you receive from someone that you agree to pay for at a later date. You can make the loan agreement with a lending institution such as a bank, or an individual, such as a friend or relative.
A Loan, in Effect. Although the Social Security rules do not allow loans as such, an individual eligible for retirement may stop benefit payments already received and restart the benefits at a later date. Any benefits paid out must be returned to Social Security, but there's no interest charged.
You would never get a lump sum amount like a real loan and you'd have to pay back all your benefits within 12 months or you'd be locked into you initial Social Security filing strategy. It's also, not like having an interest free loan for a year and paying interest thereafter. Best, Mike