Coronavirus | USA

Coronavirus US: Can I use my stimulus check to pay off credit card debt?

Over 155 billion dollars has already been paid out in 88 million checks and with a total of 150 million non-taxable payments expected to be made out by the end of stimulus check scheme.

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Coronavirus US: Can I use my stimulus check to pay off credit card debt?
Philippe Wojazer REUTERS

The stimulus checks or Economic Impact Payments, as titled by the IRS are worth up to $1,200 for individuals or $2,400 for married couples, plus $500 for each qualifying child.

At present it's not clear if the US government will issue a second round of stimulus checks for those eligible to claim the benefit, with already over 155 billion dollars having been out in 88 million checks and with a total of 150 million non-taxable payments expected to be made out by the end of the scheme.

Credit card debt

American citizens are free to spend the stimulus check on whatever the feel appropriate but many members of the public are considering using the funds to pay off credit card arrears.

Many card issuers are working with customers to provide late payment and interest waivers, as well as extending bill due dates but debt doesn't disappear.

Should you want to use the stimulus check to address a credit card debt, establish how much you owe on each account/card and commence by paying back the credit card debt with the highest interest rate.

If you are unsure as how to tackle debt, discuss the matter with a reputable financial services adviser.

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