On Tuesday, February 17, President Obama signed the Stimulus Package in law at the Denver Museum of Nature and Science saying that today marks the beginning of the end of the recession. He believes this to be the beginning of what is needed to reassure families worried they can抰 afford next month抯 bills. This signals an attack on the forces that make payday loans one of the fastest growing forms of credit in the US. The intention is to give people more cash in their pockets so there is less need to borrow. For those in work, there is a new tax credit ?Make Work Pay ?requiring employers to withhold a smaller amount of tax from the paycheck. Over the next year, this will add up to $400 for every person earning less than $70,000, $800 for couples whose joint earnings are less than $140,000. For families in need, the income threshold for receiving the child tax credit is lowered. The number of food stamps is increased. For the most urgent cases, cash may be given as Temporary Assistance for Needy Families. There are also modifications to the Alternative Minimum Tax for the middle class and a cash payment of $300 to retirees and the disabled who do not work.

For those earning less than $125,000 with the cash and the credit score to buy a new car, there are new deductions allowed for interest on the loan and sales tax. There is also a credit of $15,000 for anyone who buys a house this year. To encourage higher education, Pell Grants are increased and there is $2,500 of American Opportunity Tax Credit towards the cost of tuition payable to those earning less than $80,000. As unemployment reaches levels higher than those seen for the last twenty-five years, unemployment benefits now last for an additional twenty weeks and there is more help on health care through Cobra and Medicaid. Hopefully the job creation provisions will ease that as the new infrastructure projects kick in.

The intention is to give practical assistance to all families whether they are working or not. The Administration understands that even a few hundred dollars can make the difference between financial success and failure. The Stimulus Package therefore tries to tip the balance in favor of solvency. Although there are cash loans available to help people who get into financial difficulties, this is adding more debt when less would be better. No matter how simple it is to apply ?just a simple form to complete showing your employer and giving details of your bank account - the US got into trouble by being hooked on debt. So everyone has to deal with their practical needs. If there is no choice, you take a cash loan until the next paycheck. If there is the chance to apply to the fund called the Temporary Assistance for Needy Families, this can save you from further trouble.