Stimulus Checks Effect On Online Payday Loans: How Americans Use Their $ 1,400 Stimulus Checks | Brand Voices

The Americans got new stimulus checks. Pay attention to the most important points (acc CNBC)

  • New $ 1,400 stimulus checks are set to help Americans pay off existing debts, buy basic necessities, and pay bills.
  • A year after the pandemic began, attitudes towards money have changed.
  • People expect the funds received to last less than 3 months.

Americans are using new $ 1,400 economic checks to pay their monthly bills, according to a new study. In addition, this happens regardless of the income they receive. Payments of up to $ 1,400 per person (plus $ 1,400 per loved one) were approved by Congress in March under the American Rescue Plan Act. To date, the government has transferred more than 156 million payments. The total amount of payments was $ 372 billion.

Online research service for short-term loans COMPACOM Financial experts revealed how Americans will spend the final check as a percentage (note that respondents may have chosen more than one use):

  • 45% of Americans will use the final round of checks to pay their monthly expenses
  • 36% want to use the money to cover their daily needs
  • 28% of people will increase their savings.

An interesting fact is that only 13% of people said they used their $ 1,400 stimulus checks on minor items or discretionary actions.

March 2020,%

January 2021,%

April 2021,%

Monthly bills




Everyday objects




Pay off debt




Add to savings




Unnecessary expenses












Something else




I do not know




So below you can see how Americans are handling their stimulus checks, according to a survey from March 2021.

Can stimulus checks for existing debts be attached?

Although many people are interested in this question, it is difficult to give an unequivocal answer. So on the one hand – yes, on the other hand – no. Let’s take a look at each one in turn.

So new business stimulus checks cannot be used to pay taxes, student loans, or alimony, but unlike the last $ 600 check, this final round can still be used by collection agencies to pay off overdue credit card debt. However, a court order must be obtained against you so that the collectors can collect your money. Banks can take parts of your money to pay fees, but private collectors are more determined and aggressive.

The government is struggling with check garnishment, however, which is why New Jersey Governor Phil Murphy recently announced good news for residents of the state. It is because 49 banks and credit institutions are now protecting American payments from attachment, because, according to Murphy, “the American bailout plan is for the American people – not for the banks and creditors.”

Are you waiting for the next stimulus checks? Prioritize!

You surely understand that the coronavirus pandemic has negatively impacted the global economy and the lives of Americans. Unfortunately, more than 30 million people are unemployed so they turn to the federal government for help. People need money to pay rent, utility bills, shopping and groceries and other vital needs.

While the latest Senate Republican aid proposal includes another round of stimulus checks, it will be some time before people actually get them. The HEALS Act aims to pay $ 1,200 to individuals who earn up to $ 75,000 and $ 2,400 to couples who collectively make up to $ 150,000. An additional $ 500 is paid per dependent. Individuals who earn more than the above amounts will receive a lower payout. In addition, payments to individuals with an income of $ 99,000 and to couples with an income of $ 198,000 will be phased out.

President Donald Trump has also signed several decrees that postpone wage taxes and student loans until the end of the year. In addition, some measures to protect against deportation and to expand federal unemployment benefits were planned. However, according to TansUnion’s latest consumer survey, around 77% of people affected by the pandemic are concerned about paying bills and paying off their existing loans. On average, they distantly say that their deficit this month is just over $ 870.

How do you decide which invoices have priority?

When you don’t have enough money, deciding how to prioritize and manage it can be very difficult. If you do not currently have enough cash to cover all of your existing expenses, keep the following points in mind to help you decide which bills should be covered first.

1. Check your spending to survive

The very first step you need to take when you don’t have enough money to deal with debt is first of all to determine what you are spending your money on. With many Americans awaiting the second round of the $ 1,400 stimulus check, they don’t pay special attention to how much or where they are spending. However, it is important to understand that a new round of checks is not yet guaranteed and, in any event, may not cover all of your existing expenses and debts, even if you receive one.

Therefore, you must first determine and write down your basic monthly requirements. These include the following:

  • protection
  • Utility bills
  • eat
  • transport
  • medicine

So instead of spending insane money and waiting for the next payment, you should know your income and expenses and be able to highlight the main thing. So how much money do you need per month to survive?

To help you decide which bills are worth paying right now and which bills are waiting, ask yourself a few questions: Will I be at risk if I don’t pay? Will I be unhealthy if I don’t pay? If you answered yes to either or both of these questions, it means the account information is your priority and should be addressed as soon as possible. Living and eating should always be in the foreground, because these are exactly the things without which one cannot survive.

2. Find out what help you can get

Now that you have identified which invoices are prioritized, you need to identify the next most important cost. Second most important are the payments that are still needed but not vital. These include, for example, cellular communications, the Internet and utilities. Also, be aware that many utilities may set aside an extra month to pay bills before they close.

You should also consider whether it is possible to suspend or reduce existing payments using assistance and deferral programs offered by various wireless carriers, utilities, credit card issuers, etc. Most likely, you already tried to contact them at the beginning of the pandemic. However, if you have not succeeded in this, it makes sense to contact suppliers again, especially if unemployment has affected your financial situation and solvency.

Please note that this point is very important for your budget. Keep in mind that if you have a federal sponsored loan that allows you to defer payment for six months or a year (with no fees or interest), there is no point in spending Stimulus Check money to pay off your mortgage !). . Note, however, that you cannot stop payments without consulting the lender as it can create additional problems.

3. Watch out for debts that require immediate payment.

Once you’ve been managing the basic expenses for a month and you still have money on hand, you should look out for other debts that need to be paid off as soon as possible. One of the best ways to prioritize debt is to ask what to take if I don’t pay it back.

Take care of your property. For example, if you own a house or a car, these assets can be taken away if you fail to pay the mortgage or loan. However, be aware that if you fail, for example, to pay your medical bill or student loan, you will not lose your health or education. Therefore, focus on debt that can really be withheld from you. So pay for what can be picked up first, such as accommodation or transportation.

Important! These priorities outlined in this clause should only be a temporary solution to your problems, as medical bills and student loans must also be paid off. If you keep missing out on government loan payments, the government can seize your tax refund. The government doesn’t even have to go to court for this. Also, be aware of other creditors who may sue you if you fail to make payments.

4. Don’t impulsively repay all debts

Even after the main expenses, you still have cash to spare, and you don’t have to immediately pay off any existing debts (such as student loans or credit cards). Experts recommend paying a little more than the minimum required payment to help pay off debts faster and avoid additional interest.

In the current situation, however, the more logical solution would be to have cash to pay for and buy everything you need (rather than thinking about long-term debt). Also note that the CARES law, which was passed by Congress in March, allowed federal borrowers to temporarily suspend payments until the end of September and cut interest rates. Federal loan interest up to 0%. While this may seem like strange and illogical advice, you shouldn’t think about long-term debt in a difficult life situation. In the end, you don’t know what could happen tomorrow or in a few days. You may need money again that you no longer have.

5. Get help

In times of financial difficulties, many believe the situation is hopeless, but it is not. It is important to seek help and get it done as soon as possible. First, reach out to your family and friends, talk about your situation, and keep an eye out for websites like and that have programs and services that can help you with food, accommodation, and transportation.

Do not be ashamed if you find yourself in a difficult financial situation and need help. Keep in mind that some bills, like childcare, can be more flexible as you can ask a loved one to look after your child or go to a community center for a small fee. Look for an opportunity to get help and you will be able to deal with any difficulty.

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