As Congress smooths out the details of the next coronavirus relief package, a new report from Morning Consult shows that the much-anticipated $1,400 stimulus payments would help keep tens of millions of Americans on top of their bills in the coming months.
Based on household survey data, Morning Consult estimates that more than 30 million adults were unable to pay their bills in January. The vast majority of those unable to pay their bills in January – 82% – were households with incomes of $50,000 or less per year, “underscoring how severe wage losses have been concentrated among low-income adults during this recession.” said Morning Consulting.
Of the adults who couldn’t pay all their bills in January, three quarters were short of less than $300. With that in mind, Morning Consult estimates that an additional $1,400 incentive payment — combined with income from a job or unemployment benefits — would enable 22.6 million adults to pay their expenses in full for four and a half months. If the checks are sent in early March, they could help keep tens of millions of adults out of debt until mid-July.
The remaining people in arrears, about 7.5 million, would still benefit from the one-off payment, albeit to a lesser extent. According to Morning Consult, they were at least $500 short in January to pay all their bills, meaning a $1,400 payment would take them less than three months (some households qualify for more than that, depending on the number of people). chargeable).
Morning Consult is wading into the debate about potentially changing income thresholds for the incentive payments, noting that on Feb. 4, low-income households and parents reported spending more of their incentive checks than higher earners. It states that future payments should be limited to households earning less than $50,000 a year, and that parents should receive higher payments for each child. (Of course, households making more than $50,000 a year may have spent the check later.)
At the moment there is no concrete timeline for when the next aid package can be expected, although top Democratic lawmakers have said they want to approve it in the coming weeks before the main unemployment insurance (UI) benefits expire on March 14.
In addition to the up to $1,400 payments for eligible taxpayers and their dependents, the $1.9 trillion aid package includes an additional $400-per-week unemployment benefit package and would extend certain UI programs through August 29. It would also provide funding for a national vaccination program and additional loans for small businesses, among other facilities.
Do not miss:
Checking out: The Best Credit-Building Credit Cards of 2021