Last week on this blog I recommended that any economic stimulus proposal must include some relief on credit card rates to be effective. Now I get to say "I told you so."
A survey of Angie’s List members – who, mind you, are 2-person household/ homeowners/ college-educated professionals/ with an average household income just over $100,0000 (and should have money to spend) – finds that a measly 2% plan to splurge with their tax refund this year, and a third say they will use their tax check to pay down bills.
"Our members, generally speaking, are careful with their money and like to spend it wisely," said Angie Hicks, founder of Angie’s List. "But like many Americans, about half of our members see 2008 as year that will be financially difficult so they’re not looking at that annual tax check as ‘mad money’ at all this year."
Angie’s List members have the following plans for their tax refunds:
- 32 percent will pay down bills
- 25 percent will invest it in home improvement
- 13 percent will save it for a rainy day
- 16 percent are unsure or didn’t specify what they’ll do with the money
- 11 percent will invest in the stock market or other financial sources
- 2 percent will splurge on something
What do you plan to do with your tax rebate/tax refund check this year? Take our poll!
Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.
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I sure am going to saving the extra money. my policy in general is to save any extra money rather than spend it
I’m probably going to add it to a credit card payment and pay off a card. The amount of money I have going out in payments is limiting how much money can go into the economy. I think it’s better to spend money you have and avoid using plastic to get what you want.
I’m definitely putting my return down towards my debt (which is just a home equity loan). It’s the best guaranteed return I’ll get. Plus, I don’t need another ipod – eight is enough!
yeah me too!