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Survey: Tax refunds will go to pay down debt, boost savings

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Ira Kantor | April 1, 2013

Consumers concerned about their budgets will use this year’s tax refund to pay down debt and strengthen their savings, according to a recent survey conducted by American Consumer Credit Counseling.

Out of 251 consumers surveyed in the recent web poll, 45 percent said they will use their 2013 tax refund to pay down their credit card debt, while 26 percent will put the cash directly into their savings. Less than 1 percent of respondents will use the refund to open or contribute to a retirement account or pay down student loans.

“Tax refunds provide consumers with a financial opportunity to make a step in the right direction and these results indicate that consumers are doing just that,” said Steve Trumble, president and CEO of American Consumer Credit Counseling. “Paying down debt is the single most important financial action that a consumer can take to achieve a financially stable future and it’s promising that those who have encountered financial difficulty in the past are making better decisions.”

The survey results also show that consumer confidence in the economy is on the rise. Of those polled, 11 percent plan to use the refund to make a purchase, an 8 percent increase from ACCC’s survey last year, officials said.

 

American Consumer Credit Counseling (ACCC) provides nonprofit credit counseling, debt management services, credit relief and debt relief help to consumers nationwide. Our free credit counseling services help individuals and families learn how to manage debt more effectively and how to get rid of debt more quickly. Our certified credit counselors show consumers the various ways to pay off debt, and we offer affordable debt management programs for getting rid of credit card debt by consolidating debt payments. Our debt negotiation services help with managing credit card debt and paying off debt more quickly by reducing interest rates and finance charges. And our financial education services help consumers manage money more effectively, find reputable debt consolidation companies and answer questions like "How do you consolidate debt?"

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