Thread: Stimulus checks burning holes in nation’s pocketbook

Stimulus checks burning holes in nation’s pocketbook

Many Southwest Floridians would love to spend the extra cash on wish list items, but most are just paying off bills

By CANDACE BRAUN (Contact)
7:35 p.m., Friday, May 30, 2008

An Ibanez electric-acoustic guitar. A day at the spa. A new pair of shoes for every day of the week.

These are a few of Lee and Collier County residents’ favorite things — all items they’d buy if they could spend their economic stimulus checks on anything they wished. Approved by Congress this past January, these checks represent about $152 million that’s being disbursed to Americans who have a Social Security number, an income of at least $3,000 and have filed their 2007 tax return.

For many of those residents, however, their government-supplied checks of up to $600 — or $1,200 for married couples with an additional $300 for every child under 17 years old — will go toward credit card payments, gas and other everyday necessities.

"By the time I get it I’m going to be putting it all toward bills," said Naples resident Ed Sterling, 39. He said he’d been in the glass installation business for 15 years, but the country’s economic slowdown caused his company to downsize, making it harder for him to make ends meet.

"I’ve been unemployed for a while now, so all those bills are starting to stack up," he said.

If he didn’t have to worry about these payments, he said he’d probably spend it getting a tune-up for his black Camaro and doing other small repairs to the car.

"That’s probably considered bills too, though," he said.

Bonita Springs resident David Welsh, 24, who wanted to get the Ibanez guitar, said he hadn’t received his economic stimulus check but would likely spend it on rent.

"I’m not behind, but I’m trying to keep up with it, and this check would help," he said.

Economic stimulus checks are being distributed according to the last two digits of a person’s Social Security number. Those who selected direct deposit when filing their taxes should have received the funds by May 16, the IRS reported. For those who elected to receive a paper check, payments have been mailed out since May 16, and will continue to be disbursed until July 11.

John Rebimbas, 39, of North Naples, said he hasn’t received his check yet. He’d like to buy a new barbecue grill with it, he said, but instead will be paying overdue bills — "but only the most overdue ones." The way he sees it, he, Welsh and Sterling are far from being the only people using their payment this way.

"I think a lot of people are not spending the stimulus checks as the government has hoped. Instead, they’re spending it on the things they need in order to stay afloat, rather than going shopping or on a trip," he said. "At least (the government is) trying something though."

To better gage how people are spending this money, a new Web site has emerged. Like a blog that anyone can post to, HowISpentMyStimulus.com provides an open forum for Americans to share where their checks are going. In turn, others can comment on people’s posts, letting them know what they think about their purchase decisions. As of Tuesday, the "travel and vacation" category had the most posts, with "home and garden" taking second and "debit/credit card" taking third. "Vehicle and gas" came in a close fourth.

Major retailers are also getting in on the action, as many have started tailoring their advertising campaigns to the program. At Gulf Coast Town Center, for example, signs plastered with red, white and blue buttons urge visitors to "Celebrate the stimulus!" and carry tag lines such as, "Ask not what you can do for your country, but ‘do these shoes come in a size seven?’"

For Fort Myers resident Angela Loaiza, 34, the thought of spending her stimulus check on shoes, shoes and more shoes sounded alluring, but she said she’ll likely use the money in a more balanced manner, mixing bill paying with something fun for her 20-month-old son.

"Half will probably go to credit cards, some on gas, and the rest on a trip to Orlando," she said. "Maybe I’ll take the baby to Disney for his first time."

Wal-Mart has also taken notice of the economic stimulus program, and has responded by launching an initiative to bring consumers into its stores. The company will allow shoppers to cash their checks for free. Walmart.com also states that those who choose to load part — or all — of their economic stimulus checks onto a Wal-Mart MoneyCard, which is a prepaid Visa debit card, will be refunded for the cost of buying the card.

Bonita Springs resident Jeffrey Martinez, 31, said he may not use the chain’s check-cashing services, but he will be stopping there to spend some of his stimulus money.

"I’ll probably go to the Wal-Mart Supercenter the weekend I get it and do some clothes shopping," he said. "You can get a lot there."

For more information on the economic stimulus checks, visit the IRS’ Web site at irs.gov.

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Top five strangest things people are buying with their economic stimulus checks, based on user posts at HowISpentMyStimulus.com:

 A Hood River, Ore., woman got acupuncture for her dog

 A Joliet, Ill., woman purchased a "Star Wars" Stormtrooper armor costume

 A Tampa man bought a "Terminator 2" video game arcade machine

 A Madison, Wis., woman got a diamond tattoo on each elbow

 An Ephrata, Pa., man used his $600 to bail himself out of jail

http://www.naplesnews.com/news/2008/may ... ocketbook/

I just heard today that most Americans were specifically paying off credit cards with their money.


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www.revolutionmarch.com

www.youtube.com/watch?v=3Lxcq8fGY9w

Mine went to credit payoffs.