Jul 3, 2023

Let’s talk about debt

Kevin Dietsch/Getty Images

Some Americans used their stimulus checks to pay down all sorts of debt. Which might have been a forward-thinking plan, since federal student loan payments are set to restart this fall.

Segments From this episode

With student loan forgiveness program struck down, borrowers brace for impact

by Mitchell Hartman

Jul 3, 2023

Some of those who owe the least could be among the most affected.

Protestors demonstrate in front of the White House after the Supreme Court struck down Biden's student debt forgiveness plan.

Anna Moneymaker/Getty Images

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What do people do with stimulus checks? Yes, buy stuff — but also pay down debt

by Ali Budner

Jul 3, 2023

A recent study from the Federal Reserve Bank of New York shows that people often use government stimulus money to pay off debt — especially if they have a lot of it.

"Paying down your debt actually increases your future consumption, and that gives you a higher lifetime satisfaction," said the New York Fed's Gizem Koşar.

Marvin Recinos/AFP via Getty Images

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The team

David Brancaccio Host

Leanna Byrne Host, BBC

Kelly Silvera Executive Producer

Meredith Garretson Morbey Senior Producer

Erika Soderstrom Producer

Alex Schroeder Producer

Ariana Rosas Producer

Jordan Mangi Digital Producer

Jesson Duller Media Producer

Nick Esposito Media Producer

James Graham Producer, BBC

Jo Critcher Producer, BBC

Olie D'Albertanson Producer, BBC

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