"Economic Impact Payment" is another term used for a stimulus check, which the U.S. government sends to qualified Americans. These stimulus checks aim to stimulate the economy by providing people with money to pay their expenses during economic downturns.
Where to spend Economic Impact Payment?
Our emotions, sense of security, and self-worth, which are all compromised with the health crisis, have huge effects on managing our stimulus payment. Therefore, making the best financial decision is crucial.
According to Spend Life Wisely, the first task you need to do to be prepared enough is to look at your monthly expenses and make them your priority. Decide what you need to pay first, such as food, shelter, transportation, and utilities, while entertainment, clothes, and dining out may be set aside.
Here are some ways to boost your confidence by planning to make the most of your Economic Impact Payment based on your financial situation. If you are currently unemployed, use your second stimulus check to pay the essential living expenses such as:
Stimulus Checks could help you fall back financially
More than half (69%) of Americans have less than $1,000 in their savings, the new data from GOBankingRates reveals. It can be a huge relief if the remaining money from your stimulus check would go to your savings during the financial problems.
However, if there is no money to fall back on like most Americans, but you are employed, now might be the perfect time to change your financial management to change your future as well. You may consider to set up a direct deposit in your deposit savings account in each salary period. Make it a habit of putting a part of your money into your savings before you see or touch it.
When would you receive your first and second stimulus payments?
PYMNTS reported that the federal government would be sending out stimulus checks and prepaid cards with funds loaded to eligible individuals whom the government does not have verifiable deposit details. The government's deadline for distributing the second round of stimulus checks is on January 15, roughly 17 days to push out 100 million payments.
According to CNET, things get a little complicated, and waiting becomes longer for those people the government cannot pay through the deadline.
Through the IRS Recovery Rebate Credit, those consumers who have not been paid until the deadline could claim all or part of the missing amount of their stimulus payment. Besides, eligible Americans could claim money the IRS still owes from their first round of checks.
Issues are expected to be less for direct deposit consumers, but 22% of all first disbursement went out in check form, as per Newsweek. In the first round of stimulus, people can track their payment through the IRS Get My Payment tracking tool. However, they cannot change their bank account information. Therefore, anyone who changed bank accounts either in the first or second round of the Economic Impact Payment will get a check this time.