TUCSON, Ariz. (KOLD News 13) - Thanks to the $2.2 trillion coronavirus stimulus/relief package, money will soon be back in the pockets of most Americans.
But what's the best way to spend your stimulus check?
The economy is currently on a roller coaster ride, and there may be some chances for you to capitalize and save money.
Stocks have fluctuated between record lows and highs, prompting the Federal Reserve to slash interest rates. That’s good news for homeowners because it is an opportune time to refinance and possibly even buy a home.
Mortgage rates are at historic lows and financial experts say it's time to take advantage.
Prime candidates to save some money during this time are those looking to refinance a 30-year mortgage. If you have the job security, patience, and savings, experts say now is the time to make a move.
Michael Treiberg, president of Treriberg Wealth Management, said, "Interest rates are still very low. It's all going to depend on if you have employment and you're able to qualify for a loan. But now is certainly a good time to consider refinancing if you have a higher rate mortgage."
However, experts advise those who work in industries most vulnerable to economic downtown to think twice before buying a home during a recession.
Getting laid off and being unable to afford a monthly mortgage jeopardizes your financial future.
When looking at your long-term plans, you want to make sure you can pay your short-term bills.
Which brings us back to those stimulus checks.
Experts say over 125 million Americans will receive stimulus checks to offset hardships related to COVID-19.
And that’s really what the money should be used for first.
For those who lose their job or have suffered a loss of income, stimulus checks are intended to pay bills or feed families.
For those who are still working, some smart ways to spend your stimulus check is by investing it, paying off credit card debt, setting up an emergency fund or helping the community.
But really the intention behind these checks was to give a helping hand to those who need it most during this time.
Treiberg said, "The whole point of these checks is to really help bridge the gap for those people who may have lost their job and don't have income coming in. We really want to prioritize what bills absolutely need to be paid first. That's what these checks should go toward."
The Treasury Department has announced the distribution of the checks will begin in the next three weeks. You’ll receive yours based on your tax return from last year.
If you received your tax refund check in the mail or it was deposited into a bank account, your stimulus check will arrive the same way.