There are some people who are struggling to keep their heads above water after losing their job because of the COVID 19 Pandemic. That means many people will have to use their stimulus check just to help them get by and to put food on the table for their families, while others are able to think about using that money for other things.
Resisting the urge to spend the money from a stimulus check on frivolous items can be extremely difficult for some people and much easier for others. Stimulus checks are not issued often, so, receiving one is a big deal. You should think about how you can best utilize this money to help you in the future.
Knowing and understanding the financial opportunities that you may be able to take advantage of with your stimulus check can help you use the money in a way that can provide you with long-term financial benefits and help you to avoid having to file for bankruptcy in the future.
Tackle Your Debts and Bills
There are several ways to use your stimulus check to lower future costs from outstanding debts. These debts can include your house or car payments, utility and credit card bills, and any other outstanding debts that you may have. A lot of people have bills that they make payments on for many years, like paying off a car, a house, or student loans. You can use your stimulus check to pay down your current bills and in turn, decrease how much money that you will pay in interest rates over time.
There are other ways you can take advantage of receiving the stimulus check. For example, people struggling to skate by paying certain bills may want to split up the stimulus check to cover the most important bills first. Depending on your situation, you can also decide to finally pay off that credit card balance. This can decrease interest rates and improve your credit score.
Speaking of credit, now is a good time to build up your credit, whether this is for much-needed loans or for healthcare credit. There are several helpful and useful apps that can assist you in building your credit. This credit building app is called Self and you can build up a strong credit with small monthly payments.
Saving Up Money for the Future
If you have little to no debts or minimal bills to worry about right now, you can also use your stimulus check to save up money for the future. Depending on your situation, you could put all or part of the check into your savings account to start building an emergency fund. Many people do not have much money in their savings, but it’s never too late to start to prepare.
Establishing an estate plan for your future or a last will and testament are other things that are often put off due to financial strains or lack of time. If you have a little extra money you can use from your stimulus check to create an estate plan or last will with the help of a skilled professional, you should consider doing this.
Bankruptcy Lawyers in Chattanooga, TN
If you are experiencing problems with your finances like substantial debts or financial losses, then consider reaching out to our Chattanooga bankruptcy attorneys at Tom Bible Law, a law firm dedicated to helping clients escape tough financial situations. Our legal team has offices located in Chattanooga, Kingsport, Tullahoma to help our community members overcome debt relief and bankruptcy issues. The financial pressures that people feel during these difficult times and situations can be overwhelming.
Contact one of our Tennessee Bankruptcy lawyers at (423) 424-3116 today or feel free to leave us a note on our contact page if you have financial questions. Call us today to speak with one of our Chatanooga, Kingsport, or Tullahoma bankruptcy lawyers for further guidance.