The last few months have seen Americans struggling hard to make their ends meet- something that has led to increased shouts for another stimulus check payment.
Incidentally, during the second quarter of last year, the total household debt in the country went beyond $16 trillion, as mentioned by the Federal Reserve Bank of New York’s Center for Microeconomic Data. And while a large part of that stems from mortgage originations, consumers also went on to add their credit card balances. This would be specifically attributed to the increase in the balances by around $46 billion during the second quarter of 2022.
Stimulus Check Payments Could Highlight A Bigger Problem
Many Americans also went on to deplete their savings quite early in the pandemic- when the loss of jobs was pretty rampant. And therefore, they’ve had to rack up huge sums of credit card debt in order to cover their higher costs. Due to the burden inflation has been placing on so many people, quite a number of states have already taken up major steps where they would be issuing Stimulus Checks to residents which would help them cope with their increasing bills. But there are currently no plans to dish out similar aid at the federal level. Interestingly, most experts believe that this isn’t exactly a bad thing.
Although many American citizens have been imploring lawmakers to issue stimulus check funds to those who have to struggle, a stimulus payment might not be the real solution to this problem. If anything, another payment could make the situation worse. A big part of the reason why the cost of living has turned up so high right now is simply that Americans received quite a couple of windfalls the previous year at a time when the supply chains were quite battered. Not only did the American Rescue Plan back in March approve of payment worth $1,400, but the bill also boosted the Child Tax Credit.