Without additional income support, there is mounting concern that American households may not be able to keep up with their regular expenses – like mortgage payments – once expanded unemployment benefits expire at the end of the month.
Forty percent of mortgage borrowers said either themselves or someone in their household has been receiving unemployment benefits.
However, facing income loss, Americans said they would be most willing to default on their mortgage payments as a means to make ends meet than other debt payments, as reported by LendingTree
Meanwhile, millions of Americans continue to file new unemployment claims each week as the number of confirmed cases in the U.S. continues to tick higher, hitting states like Arizona, Florida and California particularly hard.
More than 51 million Americans have filed unemployment claims since mid-March.
“To avoid a significant decline in consumer spending once the $600 bonus expires, either the economy will have to create a lot of jobs very quickly or we need more fiscal support,” Torsten Slok, chief economist and managing director for Deutsche Bank Research, wrote in a research note.
Republicans have expressed resistance to continuing the additional $600 benefit because they believe it discourages unemployed individuals from seeking out new work.
However, the Trump administration has advocated for a “back-to-work” bonus, which would provide a monetary incentive for people to obtain new employment.
Another stimulus bill would need to be passed by both chambers of Congress and signed by the president before taking effect. Senate Majority Leader Mitch McConnell has said he hoped to have something approved before lawmakers leave for August recess.