Finance: How Stimulus Bill Has Affected Credit Scores And Debt

By Audrey Howard on July 17, 2010, 10:42 am

The economic stimulus package of 2009 certainly hasn’t fixed all of our economic problems, but it has had an overall positive effect on the credit scores of individuals and has eased the burden on small businesses. The tax breaks that were included in the bill have been the most helpful as far as encouraging consumer spending and freeing up capital to help pay off outstanding debts. Small businesses are paying back loans at a faster rate thanks to the extra tax breaks. It is still rough for new businesses starting up in the current economic climate but the stimulus is helping.

The Impact On Students

Students are definitely feeling some relief thanks to the stimulus package. The federal Pel Grant program received a generous amount of funding thanks to the bill. Students who qualify for a Pel Grant are now getting more money, which means they won’t have to go quite as deep into debt in order to pay for their schooling. Higher education is now a little bit cheaper for the students in question as a result and this will allow them to pay back what they actually borrow much faster. It doesn’t mean students aren’t having financial problems but at least it helps relieve some of the pressure.

 

The Affect On Credit Scores

The big picture on exactly how much the stimulus has affected credit scores isn’t entirely clear, but it is undeniably helping in several ways. The new jobs that were created thanks to the bill is definitely helping. Unemployed debtors who have secured employment thanks to the bill are now getting back on their feet when it comes to making payments. The individual tax cuts are also allowing people to pay more on their outstanding debts. Overall, the bill hasn’t made these problems go away but it has definitely contributed in a lot of beneficial ways.

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