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Whose economy will YOU stimulate?

The media attention to the upcoming economic stimulus payments that the U.S. government will be sending out in a few short weeks has many people thinking about what to do with the check they are about to receive.

When the $152 billion package was passed by Congress and signed into law in February, it was done so to put money in the hands of the consumer so they could spend it and help keep the economy moving.

Many people will treat it like their annual tax refund by considering it "free money" and spending it on something they have been wanting, or wanting to do, for a long time. Vacation, big screen television, upgraded computer system, cell phones or other electronics. Some may do necessary repairs to their vehicles or replace appliances in their homes, things that have been put off until there was "extra money". Some may need it to buy groceries and pay the electric bill.

What most people tend to forget is that there is no "free money". Your income tax refund is money that came out of YOUR paycheck throughout the previous year. Furthermore, the government had free use of that money before requiring you to do the paperwork to get it back and they paid no interest for that use all year. The economic stimulus is borrowed money that will now be included in the national debt, which belongs to ALL of us. And our children, and probably their children, too.

Some people may decide to use that money to pay down their own debt, paying off high interest credit cards, taking care of medical bills, or starting that savings account that can be used in case of unexpected expenses. Delaying the purchase of those new "toys and gadgets" now may mean enough money later to make the house payment or keep the car.

With the current economic climate, the mortgage industry turmoil and the uncertainty in the financial world, it makes sense to help our OWN household's economy by not taking on more debt, but actually reducing our current debt. Becoming debt free is a smart goal for all of us and may stimulate long-term financial stability in the long run. Think about your part in the Economic Stimulation and how you can best help yourself and your financial future.

Questions about the Economic Stimulus Payments

HOW TO GET IT
To receive a payment, taxpayers must have:
- A valid Social Security number
- $3,000 of income
- File a 2007 federal tax return

All you need to do is file a federal income tax return for 2007 by October 15, 2008. Even if you are not otherwise

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