Getting Supplemental Security Income (SSI) in New Jersey can be a relief to those who are disabled, blind and 65 and older with resource and income limitations. Still, getting the benefits will not automatically clear a person’s financial worries so they no longer need to think about making ends meet. Part of life is unexpected expenses. If there are costs that must be paid and SSI-related benefits do not provide enough to cover them, it might be necessary to secure a loan. However, people are frequently frightened by how a loan will affect their SSI benefits. Understanding the law for this issue is imperative.
When receiving something from another person and agreeing to repay them at another time, it is considered a loan. This can be done with a financial institution, of course. But, it can also be done with a friend, relative or someone who the person does not know more than as an acquaintance. The agreement can be written or oral. To be considered a loan though, it must be enforceable based on state law.
A loan does not necessarily need to be limited to money. It can also include food, shelter or items related to shelter. For people who take out a loan, it is imperative to understand how it affects SSI-related benefits. When a valid loan is taken, its value or the item that was received will not be considered income and will not affect SSI. Though, if the person borrows funds and it is not spent in the month it was taken, it will count as part of the $2,000 resource limit for individuals and $3,000 for a couple in the subsequent month.
If a person is getting SSI and lends money to another person, the money owed might be a countable resource and also affect SSI. If there is interest on a loan to someone else, then the loan agreement will be viewed as a resource by the Social Security Administration and the interest will not be income. Understanding how loans can be calculated with SSI benefits is just part of the entire process of getting these benefits.