New Bankrate poll reveals how the American consumer is planning to use tax refunds this year
A new study released by Bankrate, Inc. shows that, with economic uncertainty still lingering, many Americans plan to use their tax refunds in a fiscally conservative fashion, with 84 percent intending to pay down debt, save or invest, or use it for everyday necessities. The poll, conducted by Princeton Survey Research Associates International, can be seen in its entirety here:
Among the findings:
Fifty-five percent of Americans polled expect to get, or have received, a tax refund this year while 24 percent expect to owe;
While 84 percent plan on using their money to pay down debt, save, invest, or use the refund for everyday necessities, only seven percent plan on using their money on “fun” activities like shopping or taking a vacation;
Within that 84 percent of fiscally conservative Americans, 30 percent intend to pay down debt, 28 percent say they will save or invest, and 26 percent anticipate spending their refund on food or utility bills;
While just three percent of those getting a refund took a refund anticipation loan, among people with incomes under $30,000 that number is doubled at six percent;
Only 19 percent of Americans plan to adjust their paycheck withholding to avoid a big refund next year while 71 percent plan on keeping their withholding the same;
Among those who anticipate owing money, 63 percent plan on paying their taxes straight from their bank accounts. Only 6 percent anticipate borrowing money to pay off their tax bill;
SOURCE Bankrate, Inc.
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