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Expert explains how to tackle pandemic debt using stimulus money

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A coronavirus stimulus payment in front of the Capitol.

MADISON (WKOW) -- More people will receive their stimulus checks from the federal government this week.

Financial experts say the money will provide some people with funds to tackle debt taken on during the pandemic.

"Pay off any high credit card interest debts that we have, and then just kind of work our way from there," recommends Madison College Finance Instructor Michael Johnson.

Johnson says there are two methods to take when paying off debt: paying off big expenses first, or taking care of smaller debts and building your way up. "A lot of our issues with debt and overspending and things like that they're not so much a numbers issue, as as a psychological issue," Johnson continued.

Johnson also suggests saving some of that stimulus money for an emergency fund.

If you were able to work during the pandemic, Johnson says paying it forward, and spending at restaurants and local businesses will help boost the economy.

"I think that's a great idea to kind of stimulate the economy in that way, and really help some of these folks out who through no fault of their own, have really struggled."

Emily Friese

27 News Producer

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