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.
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