Tax Refunds & Advice

Have you received your economic stimulus check yet? If so, you may have already spent this money on one thing or the next. If not, you are probably thinking about what you are going to do with this money when it finally arrives in your bank account or the mailbox. Why not pay down debt with your stimulus check? For many, this $300 or more will go a long way in getting rid of stressful debt.

What type of debt can you pay down with your stimulus check? There are many answers to this question. Most commonly, consumers who decide to use their check for debt are going to turn to credit cards. How much credit card debt do you have? If you can cut into this by using your entire stimulus check you should consider doing so. No, this is not going to be fun, but it will definitely help your financial situation. Remember, when you pay down your debt you are saving yourself a lot of money in interest charges.

Of course, debt comes in many different forms. You may want to put your stimulus check towards your car payment or mortgage. Believe it or not, one extra payment of $600 can shave several months off of your term. Who wouldn’t like to pay off their car or home a bit earlier than expected?

While the government is hoping that the majority of consumers will spend their stimulus check recklessly, many know better than to do this. If you do not immediately pay down debt with this money, you may want to consider saving it in the bank for future expenses. There is nothing wrong with spending this money on something fun, but if you have more pressing issues, such as debt or building an emergency fund, you should take care of these areas first.

If you are not careful, you could end up being scammed big time while waiting for your economic stimulus check to arrive. As soon as news reports confirmed that these checks would be sent out to millions of Americans, scammers began to work on plans to “profit” from this situation. In today’s day and age, the best way to do this is through the internet. And as many have already found out, scammers are hitting email accounts hard and more than likely achieving the desired results.

Generally speaking, the way that these scammers are working is quite simple. They send out hundreds of thousands of emails posing as the IRS. Within the email, the scammer tells you to click a link in order to “claim” your money. Of course, this link does nothing more than install spyware on your computer. So what, right? Wrong! Now that this spyware is downloaded on your computer, the scammer can see every move that you make. And this includes online banking information, credit card details, personal passwords, and much more.

To avoid these scams, stay smart and avoid any emails that are suspicious. Remember, the IRS is never going to email you for further information or to collect personal data. When you file your annual return they receive everything that they need.

And of course, you should never click on a link that you do not trust. You can open any email message that you want, but the moment that you click a link or download a file you are compromising the security of your personal computer.

You want to make sure that you are personally benefiting from your economic stimulus check; not somebody else. 

Many Americans have already received their economic stimulus check, and millions more are slated to do so in the weeks to come. The question is: how are you going to spend this check? While the government wants you to spend this money “recklessly” you are under no obligation to do so.

According to recent polls and expert opinions, there are several areas in which Americans are considering spending their economic stimulus check:

1. Save, save, save. A large number of people who receive a check will take the money and stock it away for a rainy day. With the economy heading for a recession (if it is not already there) fear is on the rise. By saving this money, people can add a bit more security to their financial situation.

2. Spend it like the government wants you to. There is nothing wrong with spending your check on an item that you have had your eyes on. This can include anything from a new computer to a down payment on a car. If you want to have some fun with your “found money” head to your local mall and spend away!

3. Give it to charity. While this is sure to be the least popular option, it is something to consider if you are unsure of what to do with this extra cash. Before you do this, make sure that you are in the position to do so. After all, if you are in the midst of a financial struggle you would be much better off keeping the money for yourself.

You can use your economic stimulus check in one of the three ways listed above, or in any other way you see fit. And remember, there is no hurry. In other words, you do not have to spend the money the day that you receive it. If you are unsure of how to proceed, save the money until you make a final decision.