Coronavirus stimulus checks 2020: will it be enough? How to check your eligibility and how Americans plan to spend their stimulus checks from the CARES Act.
The first round of Economic Impact Payments, the coronavirus relief stimulus checks included in the CARES Act, were deposited last week. That’s good news if you got yours and probably not such great news if your bank account (or mailbox) remains empty.
The IRS has created a resource page where people can check their eligibility and they added a “Get My Payment” feature that allows tax filers to check their payment status, confirm their payment type and enter direct deposit information if the payment hasn’t been sent yet.
Americans in every state are counting on this financial relief because COVID-19 has severely disrupted nearly all employees to some degree. More than 20 million have lost their jobs, millions more have been furloughed and millions more have had their pay cut. At the beginning of March, Google saw over a 200 percent increase in search interest for “financial help” just as local governments began to issue stay-at-home and shelter-in-place orders. Economists say the U.S. unemployment rate could exceed 15 percent, the worst it’s been since the Great Depression.
The real question is whether the $1,200 coronavirus stimulus checks will be enough – or whether they’ll quickly get swallowed up by mounting bills, like rent or mortgage, food, and prescription medicine.
Coronavirus Stimulus Checks 2020: Will It Be Enough?
Surveys by Crediful and SimplyWise both found that roughly half of Americans plan to spend their 2020 $1,200 coronavirus stimulus checks on basic expenses like groceries and utilities. According to SimplyWise, more than 15 percent will use their coronavirus stimulus checks to makeup late payments on loans and mortgages.
Over 60 percent of Americans say they’ll need another coronavirus stimulus check in the next three months and 15 percent say they’ll need it in just two weeks. Without more financial relief on the way, SimplyWise asked people what they would do and found:
- 30 percent would find part-time work
- 16 percent would borrow from family and friends
- 15 percent would use unemployment insurance
- 15 percent would sell assets like their home or car
- 14 percent would withdraw from a retirement account
- 10 percent would take out a bank loan
Coronavirus 2020: Where to Find Financial Solutions
Those looking for part-time work might be in luck. Retailers like Walmart, Dollar Tree and 7-Eleven are in the process of hiring nearly 200,000 workers to meet consumer demands during the coronavirus 2020 pandemic and employers in many different industries are holding virtual job fairs and interviews to fill open positions.
While it isn’t exactly in the form of a direct deposit, a lot of organizations are finding ways to support Americans during the coronavirus 2020 pandemic, whether it’s mortgage or rent relief, unemployment assistance, support for small businesses or support for families there are resources out there to help those who need it.
If you know you’re going to have a hard time making ends meet in the next few months, get in touch with your landlord or mortgage lender, utility company, credit card company, etc. now and talk to them about what repayment or forbearance option they’re offering before selling off your assets, draining your retirement accounts or taking out a new loan. These lenders and creditors understand the strain the coronavirus is putting on Americans and many of them are working on ways to support consumers through this uncertain time with things like reduced payments and waived late fees.