The situation of “revenge spending” and sightseeing after receiving a bailout cash check because of too much boredom during the epidemic is in fact not a common occurrence. Only 13% of the U.S. population spent their money on recreation and other non-essential items, even those with an annual income of nearly $80,000 and a higher income group among those eligible for a bailout check.
According to statistics, 156 million bailout checks have been issued to eligible people, totaling $372 billion in bailout money. According to the “American Relief Act”, individuals with an annual income of less than $75,000 can receive the full amount of $1,400 bailout checks, $75,000 to $80,000 in decreasing amounts, and annual income of more than $80,000 does not qualify.
Bankrate’s survey found that as many as 67% of people who received a relief check used the money to pay for living expenses in the near future, including utility bills, rent, groceries, etc. Even those with higher incomes among those receiving relief checks were not exempt.
Greg McBride, chief financial analyst at Bankrate, said in an interview with NBC that many people were discussing retaliatory spending and increased demand in the travel market, but only 13 percent of people spent their bailout money on recreation and non-essential items.
McBride said, if compared with the epidemic before the occurrence of about 40% of households across the United States income shrinkage, low-income households suffered the most impact, but higher-income households are not unaffected.
The survey showed that 45 percent of all people who received a bailout check said they used the money to pay their monthly fixed bills and 32 percent said they used it to pay off debt.
According to the survey results, 60% of respondents said the $1,400 bailout check would not last more than three months, while another 34% said the check would be spent within a month.
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