Lockdowns, quarantines, stay-at-home orders, shelter-in-place edicts… these are all necessary steps we are taking to save lives. The closure of non-essential businesses will keep people alive, but it is smothering the economy. Now people have to be worried about their health and their financial futures both, so the federal government has announced the release of stimulus checks to give us all a boost.
Why Do We Need Stimulus Money?
A stimulus package like this is intended to “jump-start” the economy by provided a fresh influx of cash to consumers to spend at local businesses. More business means more work, more jobs, more hours, more money.
This is (for now) a one time payment, as the government hopes this one surge of income will help right America’s economic ship.
Some people are not as effective by the COVID19 pandemic. Either they work from home, or are considered essential so they keep working like normal. Most people have been hit hard, one way or another. This could be due to reduced hours, outright unemployment, or the closure of their small business.
For these people, stimulus money is a lifeline in dark and stormy waters.
Is the Stimulus a Loan?
Stimulus payments will be $1200 per adult and $500 per child. The question arises, where is the money coming from? Most people have yet to receive their tax return payments, is that money being used for stimulus checks?
Most importantly, NO the stimulus check will not affect or reduce your tax return!
A bit more complicated is explaining where it does come from. Technically, the stimulus money is a cash advance against a tax credit on next year’s tax return. So yes it is a loan, getting your own money ahead of time, but no they won’t ask for you to return it later.
Personal Loans Still Available
If you need to generate your own personal stimulus, NSL offers sensible small dollar loans with extended repayment plans.
The federal government is giving everyone a helping hand… for now. $1200 won’t last very long in our day and age, and it might be the only relief we get.
No matter what the economy is like, NSL will always be here to help you when you need it.