Bizzee Business Seeks Answers…
What do you prepare to do with your tax refund? Do you have your eye on some brand-new furnishings or a relaxing getaway– or do you intend to utilize your refund to spend for the furnishings that you currently bought as well as the getaway that you have currently taken?
Naturally, paying down debt is the more accountable path. According to a current poll by The National Foundation for Credit Counseling, a bulk of Americans intend to take that even more accountable course with this year’s tax obligation refund. Of the 1,121 participants, 68 percent suggested that they would certainly use their refund to pay down financial obligation, while simply 2 percent claimed they would use the cash to take a holiday or shop.
In other poll responses, 15 percent plan to use the refund for basic necessities, 11 percent plan to save the money, and another 4 percent are not sure how they plan to use their refund.
In some ways, this is good news, because paying down debt should be the highest priority choice if you do not have to use your refund for necessities. The foundation is looking at the poll from the overall debt perspective by pointing out that over six times as many respondents are applying their tax refund to debt compared to savings. According to foundation spokesman Bruce McClary, “These poll results indicate that debt is still getting in the way of personal savings for many Americans.”
Most Respondents Think Responsibly
For perspective, consider that the average 2014 individual tax refund was $3,034 while the average 2014 credit card debt was $5,047. Applying every bit of tax refund money toward debt would knock the average debt down by over half, but still leave the average American with over $2,000 in debt.
A shift toward debt repayment is a welcome conclusion for the foundation and similar credit/debt counseling agencies. Merchants and economists may find this statistic alarming, since consumer spending drives the majority of the U.S. economy.
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