When presenting this question to most people, I found that most people plan to use the rebate to help pay off debts such as credit cards and loans. Which may become a very wise choice in the near future. According to a recent articles published by Business Week and MSN Money Central, credit card issuers and banks have been raising interest rates. In most cases it seems no reason was given for the sudden increase in interest rates. This rate increase is even affecting the responsible credit card holders.
Of course there were also many people that told me they want to use this unexpected rebate for a shopping spree or even to buy a much needed appliance for their homes. Some have even thought of using it to help with home improvement projects. This kind of answer is what I believe Congress is wanting to hear more than anything. If the money they send you goes back to the economy, they believe it will help to boost a falling economy and help to prevent a recession. Congress is basically keeping their fingers crossed hoping the $168 billion will be a way to revive the economy.
Although many Americans may not realize that the economic stimulus tax rebate plan is not Congress' way of giving you money. It is simply of letting you have some of your 2009 return in 2008. The money that you receive will have to be claimed on your tax return when you file for 2008. This is actually your money and the rebate checks you receive is merely an advance for the taxes you will file in 2009. A similar tax rebate was issued in 2001, which seemed to have left many Americans upset and uneasy that next years refund was reduced somewhat.
What can most Americans expect to receive from the economic stimulus tax rebate? Most Individuals will receive $600, couples should expect $1200, and $300 for each child. Although individuals who earn more that $75,000 in 2007 will receive a lower rebate. Couples who earned more than $150,000 in 2007 will also receive a lower rebate. In some cases those who earned well over these guidelines will receive nothing at all. The only American that are really receiving this rebate as free money are those who are considered low income and those who receive social security or veterans benefits. The Americans that fall into this category can look forward to a $300 rebate, as long as they earned at least $3,000 from either wages, Social Security or veterans benefits in 2007.
I myself have planned to use half of my household rebate to help pay down my credit card debt and the other half will go towards upgrading my husbands wardrobe and my sons upcoming 13th birthday in June. I plan to try my best to stretch those dollars that I will be receiving. I also have plans to switch the remaining part of my credit card debt to another credit card that will have a much lower fixed APR. rate until 2010. I believe this is an equal way of helping myself and helping the economy.
So, now I ask you, "How do you plan to spend your rebate?"
