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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, 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.
EL SEGUNDO, CA (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 Go Banking Rates
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. Go Banking Rates 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.