Consumers to put refunds toward debt, savings: survey

NEW YORK (Reuters) - As tax day approaches, about 70 percent of U.S. consumers think Uncle Sam owes them - and they already have plans for their tax refunds, according to a retail industry survey.

In the competition for tax refund dollars, retailers face stiff competition from consumers' consciences, said the survey, sponsored by the National Retail Federation.

"Many people look at their tax refunds as 'bonus bucks," said Tracy Mullin, chief executive officer of the National Retail Federation.

Retailers plan special sales and promotions starting in early May in the hope that consumers will send at least some of those bonus bucks their way, Mullin said.

Yet according to the survey, which polled 9,027 consumers between February 1 and February 8, only about 10 percent will dedicate a portion of their return to major purchases or a vacation.

About 43 percent plan to use it to reduce debt, while about 38 percent see saving it, and more than 25 percent will put the money toward everyday expenses.

"Over the years we have seen consumers of all ages shift their focus to minimizing their debt and increasing their savings," said Phil Rist, a vice president with BIGresearch, which conducted the survey.

The survey polled 9,027 consumers between February 1 and February 8.