Interesting to see how a survey says that Americans are going to spend their tax refund money. Much to my surprise, as well as the authors, that only 7% are intending to splurge on something like a vacation or a new car. This means the amount of people who are using their refunds to pay down dept has increased.
How Americans will spend their tax refund
By Sheyna Steiner • Bankrate.com
- 54 percent expect to get a tax refund; 24 percent say they owe money.
- Only 7 percent plan to splurge on something fun, like a vacation.
- Of those who owe money to Uncle Sam, only 6 percent plan to borrow.
Recession-weary taxpayers awaiting a tax refund check from Uncle Sam will not indulge in unbridled consumer spending this year. Instead, 84 percent of Americans receiving refunds intend to pay down debt, save or invest their windfall or use it for everyday necessities, according to a new Bankrate.com poll.
Only 7 percent plan to fritter the money away on a shopping spree or vacation.
On the other hand, 40 percent of those who believe they owe taxes say they are not prepared to pay up. Nevertheless, only 6 percent plan to borrow money, though 17 percent say they intend to set up an installment plan with the IRS.
A whopping six in 10 people (63 percent) will pay their taxes with funds straight from their bank accounts.
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John Paul Strong
John Paul Strong combines his two decades of automotive marketing experience with a team of more than 140 professionals as owner and CEO of Strong Automotive.