Most of the families in the United States of America were already facing a financial crisis even before the coronavirus pandemic began spreading in the country. The stimulus checks that were provided later by the federal government improved their situation. As per the report of the Federal Reserve, it was found that 41% of families whose age group went from 25 to 64, claimed that they were out of money. It was stated that they had no such financial sources to meet the expenses of 400 USD. This incident took place in the year 2019.
Stimulus Check And Debts
The main possible reason why they faced the problem is the credit card debts that had accumulated. Following this, the pandemic exacerbated the financial conditions of the people. This unexpected situation throughout the country made the federal government provide stimulus check payments to all eligible citizens. The Retirement Research center that is at Boston College, did a background study of how much help was the financial aid payments to the people in reality. To see whether they were successful in the financial upliftment of the citizens across the country.
And it was found out that the stimulus checks were really helpful in providing financial assistance to the people. However, it is yet to be studied if the cash reserves are still there or not. The first round of stimulus checks was provided by the US Congress. It was generated in the month of March by the department of IRS. Following that, payments of about 600 USD and 1,400 USD were distributed. These were provided in the month of March and then in December respectively. The eligibility rules varied accordingly. And as per the latest data, it has been found out that the household debt is increasing with time. The debt related to the credit card is 17 billion USD.