Many will pay bills with rebate

By Cathy Spaulding
Phoenix Staff Writer

April 28, 2008 10:49 pm

— U.S. Government rebate checks on their way to area bank accounts likely will go to pay bills instead of buying things.
The government began depositing thousands of Economic Stimulus rebate checks into taxpayers bank accounts Monday, earlier that originally scheduled. Paper rebate checks will start going out on May 9, one week earlier than previously announced.
The rebates range from $600 for individual taxpayers, $1,200 for couples and $300 per child for families with children.
The Bush administration is hoping that the rebates will stimulate the economy and boost consumer spending.
However, people walking around downtown Muskogee on Monday afternoon said they most likely will use the rebate for things they already bought.
“I’ll be paying off some bills,” said Julia Giles of Muskogee, who is retired. “My daughter, son-in-law and I live together, and they’re getting some rebates, too. We’re making an addition to the back of our house, and we’ll pay off those bills.”
Pilot Travel Center worker Richard Butz said he needs to pay off credit card bills.
“We’ll spend ours on bills,” said Ryan Huppel of Muskogee, who has a 9-month-old son.”
K. Walker of Muskogee, who is retired, said “I would try to find another car somewhere and save the rest.”
Financial service professional Brad Schell with New York Life, said investing and saving the rebate money would be wise.
“I would encourage people to spread it out with a tax deductible IRA,” he said. “You should find a good mutual fund portfolio.”
He said that with Certificate of Deposit rates so low, investors should diversify their portfolio.
“Lots of people are getting off credit card debt,” said Greg Gaither with Edward Jones Investments. “We have seen a 114 percent savings plunge since 1996. The amount we’re saving is the lowest it’s been since 1939.”
He advised putting rebate money in a “good quality global fund.”
Tiffany Collins of Muskogee said she plans to save the rebate.
“My husband is in Iraq, and we need to save money to buy a home,” she said.
However, Schell said he understands why people would want to use the rebate to pay off debts.
“With the rising fuel costs, you see that affecting every other aspect of our lives,” he said.