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Tax refunds going toward credit card debt

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Now that the tax deadline has passed many Americans will be seeing tax rebates in their mailbox that have probably already been budgeted to various expenses, but some people will be using that check to pay down their credit card debt.

Now that the tax deadline has passed many Americans will be seeing tax rebates in their mailbox that have probably already been budgeted to various expenses, but some people will be using that check to pay down their credit card debt.

An Associated Press-GfK poll earlier this week found that of the people who expect to receive a tax refund from the government, 54 percent plan to use that money to pay down their debt.

It appears that the largest amount of debt to be paid off for consumers is credit cards with 58 percent of those respondents saying the money will go straight to the credit card companies.

Americans should be able to put more of their refund towards credit card and other debt this year as Internal Revenue Service Commissioner Doug Shulman told the Associated Press that the agency expects to send out $300 billion in tax refunds this year with the average refund increasing this year from $2,500 to $2,700.

Some people have already received their refund and put the money toward their debt. The Banks family of Aberdeen, Maryland told the AP that most of their $3,800 refund went toward a credit card bill.

To avoid getting into future credit card debt, some people may want to use their refund to on a prepaid credit card which can help them budget their money and avoid falling into debt.


 
 
 
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