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Last Spring’s Stimulus Checks Helped Keep Borrowers Current

borrower outreachAs Congress debates a new stimulus package, and Americans anticipate the possibility of a second government stimulus check, 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.

This 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). 

These 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) 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 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 touse 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. 

About Author: Andy Beth Miller

Andy Beth Miller is an experienced freelance editor and writer. Her main focus is travel writing, and when she is not typing away from her computer at her home in the Hawaiian Islands, she is regularly roaming the world as a digital nomad, and loving every minute of it. She has been published in myriad online and print magazines, is a fan of all things outdoors, and finds life (and all of its business, technological, and cultural facets) fascinating in their constant evolution. She is excited to spectate as the world changes, and have a job that allows her to bring a detailed account of those constant shifts to her readers at home and abroad.

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