Sumary of Almost half of Americans used the $1,400 stimulus checks to pay off debt:
- Claudia Sahm said the checks were used to help families financially but also helped “stimulate the economy.
- ” The third round of stimulus checks helped families with expenses and bills, but in particular helped them pay off debt.
- Sahm told Insider that paying down debt gives Americans more financial security and helps cut ongoing interest payments down the road.
- TOP VIDEOS FOR YOU “My research brief argues – contrary to several prominent critics – that the stimulus checks, including the most recent $1,400 payments under the American Rescue Plan (the “Rescue Plan”), provided much-needed relief to millions of families and helped bolster the economy at a critical juncture in the recovery,” Sahm wrote.
- Sahm told Insider that these checks gave some families a financial cushion that they didn’t have before, helping them pay for expenses or whatever else they needed the money for.
- “Even in the best of times you have a lot of families in the US that are really cutting it close,” Sahm said.
- Based on the results, 45% of families used the $1,400 stimulus check to mostly pay off debt followed by a smaller share, 31%, that said mostly to increase savings.
- Families largely negatively impacted by the pandemic also used it to pay debt.