The name ‘stimulus checks’ suggests that the main intention for the payments is to help stimulate the pandemic-struck economy, but in reality many will be looking to use the money to pay for essential costs. As such, many will be spending their $1,400 to cover rent and mortgage payments. Stimulus checks will go on essentials for many Americans
A new report published by the Bankrate.com earlier this month found that 67% of respondents were planning to “put their stimulus checks towards their near-term financial situation”. They report that while some are planning to splash the cash on non-essential purchases (13%), many more will looking to pay off outstanding debts (32%). “More than half of the jobs lost last year have been recovered,” McBride said. “But there are still nearly 9 million jobs that disappeared that haven’t yet come back. There are 18 million Americans still drawing some form of unemployment compensation.”
But the biggest category of spending across all income brackets is on monthly bills, with 45% of stimulus check recipients planning to spend the money on rent, mortgage, mobile phone or utilities payments. Greg McBride, chief financial analyst at Bankrate, ascribed this caution to the precarious state of the US jobs market. American Rescue Plan extends Emergency Rental Assistance Program
— Nancy Pelosi (@TeamPelosi) April 14, 2021 If news that 67% of recipients are spending the #covid relief money that reached their pockets on food, bills, and other necessities is *actually news* to you — you haven’t paid attention to the suffering of the American people this past year. #HelpIsHerehttps://t.co/tccalasmo6
“The average COVID-related rental debt incurred for the poorest residents has now climbed to more than $6,400, eating up whatever stimulus money comes their way.”https://t.co/yBfskfoS7U The third stimulus checks were the most eye-catching form of federal relief offered to individual Americans in the recent stimulus bill, but was far from the only one. The package added an extra $25 billion to the Emergency Rental Assistance Program, first introduced by former President Trump, taking the total to $45 billion.
For more information on the eligibility requirements to make the most of the scheme, as well as how to apply, check out the Department of Treasury’s Emergency Rental Assistance Program support page. The program can be used to provide support for anyone struggling to cover back rent, current rent and even utility bills. The support is available for those whose income has been so severely hit by the pandemic that they are threatened with homelessness. — Women’s Lunch Place (@WLPBoston) April 13, 2021
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