SSDI Spending Tips and Tricks You Need to Know

SSDI Spending Tips and Tricks You Need to Know

SSDI spending
Tip on How to Spend SSDI Benefit Payments

The Social Security Disability Insurance (SSDI) application process can be quite long and stressful. Especially, when considering that the majority of initial applications get rejected. However, once you finally receive approval, you can expect to receive payments on a monthly basis. Additionally, you will also receive a back payment. Your SSDI back payment takes into account the months following the onset of your disability that you weren’t receiving benefits during.
Once you receive money from the SSDI, it’s important that you spend it wisely. The following are a few helpful SSDI spending tips.

Recommended SSDI Spending

If you do not have a Social Security Representative Payee, then you will be provided with your benefit payments in full every month. This payment is usually in the form of a direct deposit. The Social Security Administration takes no responsibility in regards to your bills, so what you do with your SSDI benefits is up to you.

Because most people need their SSDI benefits because they are unable to earn income working, odds are that you will have to use your SSDI benefits on your day-to-day needs, such as rent, mortgage payments, property interest, food, clothing, utilities, medical care, and dental care. However, that’s not to say that you can’t spend your benefits on anything else.

How you spend your money is completely up to you. While it’s a good idea to spend it wisely on the things you need, there’s no rule that says you can’t spend it on entertainment. However, we suggest you use the money to pay for your needs first.

What to Do With Your SSDI Back Payments

Back payments are the benefits you’re entitled to from the date that you applied for benefits to the date that you were approved. However, there is a five-month waiting period. Which means that you are only eligible for back payments past that five-month period. However, you can get retroactive benefits paid for the months between your onset date and when you applied.

Because it can be some time before you begin receiving benefits (the Social Security Administration is somewhat understaffed, which means it takes them a while to go through applications–not to mention that you may be denied initially, in which case you’ll have to appeal), there’s a chance that your back payment will be a substantial amount of money. While it can be tempting to use that money (which can be in the thousands or in the tens of thousands) on something that you want, you should focus on your needs first.

Tips to Tackle Pending Bills

First, if you’ve fallen behind on any bills, you should catch up on these. You could even pay some of your debts off if you are able to. Once you’ve done that, you may think about putting the money into savings. This is fine if you’re only collecting SSDI.

However, if you’re collecting Supplemental Security Income (SSI), then you’re better of spending it all. If you’re on SSI, you will receive the first three months at once in your first payment. They will then pay you the rest of your back payment in installments. This is to prevent you from going over the SSI income limit. If you save your back payment, you risk going over the limit and losing your SSI benefits.

First, catch up on your bills and pay for day-to-day needs. Then, consider focusing your SSDI spending on improving your living conditions. For example, pay for home improvements that accommodate your disability, such as building a ramp. Paying for medical equipment, such as hearing aids or at-home assistance, can be a good idea as well.

Use these SSDI spending tips to make the best use of your benefits. For more SSDI spending tips or advice in general, schedule a free consultation with Social Security Disability Advocates USA by calling 602-952-3200 today. Alternatively, you can chat with a live representative via our LiveChat feature!

The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice. This information is not intended to create, and receipt or viewing does not constitute a representative-client relationship.

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