Posted by Mike Smith :: February 7, 2008 @ 7:18 am

Concerns over the state of the economy have led to the approval of an economic stimulus package. If you are one of the 116 million Americans that meet the criteria, then you should have a check coming your way.

The criteria and amounts, as they stand today, are:

Individuals who pay income tax would get up to $600, working couples would receive $1,200, and those with kids could get an additional $300 per child. Also, workers who make more than $3,000 a year, but not enough to pay income taxes, would get a check for $300. Individuals and couples making between $75,000-$87,000 and $150,000-$174,000, respectively would receive only partial rebates. Having children does raise the limits. Those earning more than the limits get nothing. The checks will start being sent in May and most people should have them by the end of July.

The time to allocate your rebate check, if you’re getting one, is now. Why? Because as of a few days ago, you weren’t expecting a check and now you are. As time goes by, the check will seem like less of a windfall and more of something you planned on getting. Like I said in my short post on ignoring raises, if you could survive before it, then you can survive without spending it.

So what should you do with your check? If you have credit card debt, the check is a great way to pay that down. If you need more money to fully consolidate your debt, then a person-to-person loan from Lending Club can make it happen. For those of you who are debt-free, or have limited bad debt, earmark your rebate check to create, or add to, a person-to-person loan portfolio on Lending Club. How many people want to invest, but use the excuse that that don’t have any extra money to do so? These checks eliminate that excuse.

Spending your economic stimulus rebate check may bring you enjoyment, but it is likely to be fleeting. Do you even remember what you did with the last bonus or tax refund check that you spent? Using this unexpected money to pay down debt or begin a loan investment portfolio with Lending Club will help you improve your financial situation.