19
LAST SPRING'S
STIMULUS
CHECKS
HELPED KEEP
BORROWERS
CURRENT
A new survey showed that stimulus
checks last spring went mostly to cover rent
and mortgage payments, as well as other
"household expenses."
Credello, a personal finance tool, recently
released these findings.
is past April, all U.S. residents who were
eligible received a stimulus check (officially
known as an Economic Impact Payment)
thanks to Uncle Sam (officially known as the
federal government).
ese funds (each check was worth up to
$1,200 for individuals or $2,400 per married
couple, plus an additional $500 for each
child under 17) are meant to help Americans
navigating the devastating economic impact
of the current COVID-19 pandemic.
It is anticipated that yet one more round
(at least) of payments could go out (most
likely even before the November elections).
However, it is reported that negotiations have
stalled in Congress. It is believed that all those
who received a stimulus check the first round
would also receive one this next round as well.
So, the question is posed: "What will
you do with your funds received?" Before
answering this question, the U.S. Census
Bureau surveyed recipients, asking them what
they spent their first round of federal funds
on. According to the survey, the majority of
adults in American households either did—or
planned to—use most of the money toward
some kind of household expense.
Broken down below are just some of the
most popular responses for how stimulus
checks were spent:
» 80% used the money for food
» 78% spent the money on rent/mortgage
and/or utilities
» 58% used the money for household supplies
and personal care products
» 20% spent the money on clothing
» 10% planned to spend the money on
household or recreational goods
» 33% planned to use the money to pay off
debt or add to savings
As they anticipate a possible second
round of stimulus checks, experts advise all
Americans who are able to do so (read: those
who have their survival necessities met)
should continue to focus on paying down
their debts.
