Many Americans are concerned about economic stimulus checks, as they worry that the checks will not be enough to make ends meet. There have been rumors of people losing their homes and other property, which have been further fueled by news of tax increases on top of the stimulus package. While no one has lost their home or property due to the recession, many in America are becoming very concerned.
The truth is that the economic stimulus checks will most likely be sufficient to keep millions of Americans out of poverty. It is expected that about nine million taxpayers will be granted at least a six-month paid holiday as a result of their federal tax return. Most Americans have already filed their federal income taxes and the majority are in complete support of the president.
One thing that many Americans do not realize is that about two-thirds of the stimulus money has been designated to state and local governments. About one-third of this money has been designated for cities and local governments and about thirty-five percent is available for schools. Most of the states that have received assistance from the economic stimulus checks are also experiencing budget shortfalls and citizens are worried that cuts will be made to services if no new federal funding is available. That is why many citizens are asking how can we continue to pay our state and local government taxes with these economic stimulus checks?
A good portion of the citizens' concern with the federal tax package comes from the impact it will have on their ability to make their monthly mortgage payments. Most American citizens who are behind on their house payments are well aware that they will not be receiving additional financial assistance until after tax season has completed. For many Americans who have had a difficult time paying their mortgages over the past year or more, receiving additional federal assistance during this time could provide much needed relief. Without additional financial assistance, it could be nearly impossible for an individual to continue making their mortgage payments. For this reason, many citizens are asking how can we continue to pay our state and local governments with these economic stimulus checks when so many of us know that it is nearly impossible to make our monthly mortgage payments without some form of assistance?
One answer to the question posed above concerns how the economic stimulus checks will affect those citizens who are currently paying off their mortgages through interest only payments. For those homeowners who have had their homes for less than five years, the stimulus package will not increase their interest rate. This does not necessarily mean they will not be affected by increases in their mortgage costs. In fact, the package will increase the loan amount, thereby increasing the monthly mortgage payment. For borrowers who have had variable rate mortgages over the past year or more, this will be a significant hit to their household budgets. For these borrowers, one way out of this predicament is . . . . . . to request direct payments from the federal government in the form of a check.
There is a possibility that a number of federal government check programs may be made available to American citizens through the Economic Stimulus Package. As these programs began to get implemented, more Americans are becoming eligible for direct payments from the federal government. As of this writing there are still a few hundred thousand Americans being approved for these direct payments, however the number of approvals has been on the decline recently. With this decrease in approved applicants, there are opportunities for American citizens who are experiencing a financial hardship to be approved for some of these direct payments. There are even opportunities for some individuals to be approved for as much as three hundred dollars in government stimulus checks.