More than 16 million people are out of a job (while millions more hang onto their jobs in this stressful and uncertain environment), worrying about how to pay bills, rent, debt and make it through the economic downturn, as a result of the coronavirus.
Thankfully, Americans are responding to the COVID-19 crisis with wonderful acts of to the generosity and community spirit. The coronavirus stimulus checks is the government’s response to help ease the economic burden on American families as we move through the pandemic. It’s important that individuals carefully plan for how to use the money. The best use of your stimulus check will depend on your specific financial situation and short and long term financial goals.
The Internal Revenue Service will send $1,200 payments to individuals with adjusted gross income below $75,000 and $2,400 to married couples filing taxes jointly who earn under $150,000. The government will also pay $500 per qualifying child.
An article published by Forbes advises, “At a time when so many lenders and credit card issuers are offering relief and forbearance to borrowers, it might seem strange to talk about using your stimulus check to pay off debt. But paying down debt also can be a good option for your stimulus cash, depending on your situation and goals… Paying off debt is almost never a bad financial move.”
Think carefully about how you want to get the most out of your stimulus money. Hopefully the extra cash is able to help Americans afford essentials like groceries, household expenses, bills with enough left over to continue making payments towards successfully completing debt programs. It’s as important as ever to continue working towards a debt free future.