Average American to Receive $2,800 in Tax Refunds, New GoBankingRates.com Guide Explains How Individuals Can Best Use Refund Money

Leading personal finance site, http://www.GoBankingRates.com, releases a detailed consumer guide explaining how individuals can best use their tax refund money. The new guide helps people analyze their financial situation and decide whether they should save their refund money or pay down their debt.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friend
Tax Refund

Tax Refund

I don’t think you should go into full debt-elimination mode until you have some sort of financial cushion for emergencies.

EL SEGUNDO, CA (PRWEB) March 22, 2013

According to a March 2013 article in TIME, the two thirds of taxpayers who will receive a refund this year will get an average of $2,800. What do they plan to do with this sizable chunk of change? Unfortunately, 30 percent plan to use their tax return to pay for everyday expenses, finds a survey from National Retail Federation. This number is up from 29% in 2012.

Most taxpayers, however, will be using their tax return money to get ahead in their finances, finds GoBankingRates. Of those receiving refunds, 37% plan to use their money to pay down debt, and 44% will be stashing extra funds in their savings account. GoBankingRates investigates the pros and cons of each option, and provides taxpayers with a guide to deciding how tax refunds should be used, depending on their financial situation.

GoBankingRates expert contributor Elle Martinez says, “How can you use your tax refund to build your finances? Paying off debt can be like lifting a huge weight off of your shoulders.” However, she advises, “I don’t think you should go into full debt-elimination mode until you have some sort of financial cushion for emergencies.”

For help on deciding how to spend tax refund money, click here.

About GoBankingRates

GoBankingRates.com is a national website dedicated to connecting readers with the best interest rates on financial services nationwide, as well as informative personal finance content, news and tools. GoBankingRates collects interest rate information from more than 4,000 U.S. banks and credit unions, making it the only online rates aggregator with the ability to provide the most comprehensive and authentic local interest rate information.

For questions about this report or to schedule an interview with a GoBankingRates editor, please use the contact information below.

Contact:

Jaime Catmull, Director of Public Relations
http://www.GoBankingRates.com
JaimeC(@)GoBankingRates(dot)com
310.297.9233 x261

###

Sources:

  •     TIME, Why We’re So Irrational When It Comes to Tax Refunds, March 18, 2013.
  •     National Retail Federation, “More Americans Serious About Saving Tax Returns This Year, According to NRF Survey,” February 22, 2012.
  •     National Retail Federation, “Seven in 10 Americans Adjusting Spending Plans to Cope With Recent Payroll Tax Changes, According to NRF,” February 21, 2013.


Contact

Follow us on: Contact's Facebook Contact's Twitter Contact's LinkedIn Contact's Google Plus

Attachments

GoBankingRates.com GoBankingRates.com

GoBankingRates.com


How to Decide if Your Tax Refund Should Go to Your Savings Account or Debt Payments How to Decide if Your Tax Refund Should Go to Your Savings Account or Debt Payments

How to Decide if Your Tax Refund Should Go to Your Savings Account or Debt Payments