The second round of coronavirus stimulus checks is on the way — in fact, you may have already received one by direct deposit if it was due to you. In general, single adults who qualify will receive up to $600 and married adults will receive up to $1,200. Those with children 17 years or younger will also receive $600 per dependent. Now the question is — what should you do with that cash? Here are some ideas.
Pay down debt
If you’ve racked up serious credit card debt during the pandemic, you might want to use this new check to pay the balance down. Use the money to pay down the card with the highest interest rate first, then move on to the card with the next highest interest rate..
Catch Up on Bills
The pandemic has made it tough to keep up with monthly bills. If you’ve fallen behind, you could use your check to catch up. Keep in mind that many companies may be willing to work with you during this difficult time, so try calling and asking about relief programs that are being offered.
Pad Your Emergency Fund
Perhaps your debt is paid down and your bills are all caught up — you could use the extra cash to beef up your emergency savings account. Just be sure that the account you’re using is offering a good return. If you typically use a big bank for savings, try a community bank, as they typically offer accounts with higher interest rates.
Stash it in Savings
In maybe the best case scenario, you’re in a stable financial place and can simply sit on the stimulus check. It never hurts to just save your money, because if 2020 taught us anything, it’s that the future is uncertain.
Article written by Chris O'Shea: SavvyMoney.com
