 |
| |
|
|
|
|
Consumers Put Tax Refunds to Good Use
Subscribe to the MoneyManagement.org Press Mailing List
For more information contact:
Tanisha Warner (713) 394-3202 |
Release Date: March 21, 2007 |
Despite the recent announcement by the Commerce Department that US consumers spent more than they earned in 2006, most consumers plan to put their tax refunds to good use. In fact, Money Management International’s (MMI) 2007 tax refund survey found that 32 percent of consumers expecting a tax refund plan to save it. In 2006, the IRS issued more than 100 million refunds, averaging $2,264.
The survey also found that 46 percent of consumers expecting a tax refund plan to use it to pay obligations, such as debts or car repairs. Only 3 percent of those surveyed plan to splurge.
Cate Williams, vice president of financial literacy for MMI, is encouraged by the news. “Financial experts agree that consumers should aim to have three to six months’ worth of living expenses saved for emergencies,” explains Williams. “For many Americans, placing tax refund money in a savings account could be the difference between a future financial difficulty and a future financial disaster.”
Additionally, rising consumer debt is recognized as a serious social issue. Consumer debt is now at a record $2.17 trillion, according to the Federal Reserve Board. Williams reminds consumers that they worked hard to earn every penny of their income—including their tax refund. “Reducing your debt allows you the freedom to make smart future financial choices,” she added.
To help consumers discover ways to make the most of their tax refunds, MMI created SaveOrSpend.com. Launched on March 1, the lighthearted educational Web site features consumer-submitted refund stories, solutions and strategies. In addition to educational and entertaining features for savers and spenders, SaveOrSpend.com offers a savings calculator, a filing deadline countdown clock, and tips for those who find themselves owing the IRS.
The MMI tax refund survey was conducted in February 2007 by Knowledge-Based Marketing. There were a total of 1,048 respondents. Results were weighted by demographics so they are representative of the US population as a whole.
|
Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
|
Back to Press Room |
|
|
|
|
