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Many MA residents will use tax refunds to pay credit card debt

Based on the results of a recent poll, most people in Massachusetts who are fortunate enough to receive a tax refund this April will probably use it to reduce their credit card debt.

Of those who responded to the recent poll, 45 percent -- almost half -- will pay off some or all of their credit card bills with their money that they get back from Uncle Sam this year. Another 26 percent of those polled plan to put their refund into savings.

How people plan to spend their tax refunds this year may mark the continuation of a broader popular trend to eschew credit card debt. On the whole, while retail spending increased during 2012 as compared to 2011, the total balances on Americans' credit cards decreased by about the same percentage.

Judging by these numbers, it would seem that Americans are being more careful to make sure that they have enough cash saved up to buy items outright when making a significant purchase, Some experts see this trend as a positive sign that those who suffered during the recent recession have learned how better to control their expenditures and manage their money.

One expert even sees the paying down of debt as "the single most important financial action that a consumer can take" in order to maintain a steady financial ship on its course or to right an unsteady one.

While those who receive tax refunds or who otherwise can afford to unload their debt may rightly choose to break free of their credit card bills, other Massachusetts residents might not be so fortunate. Those who are drowning in credit card debt and see no easy long-term solution may want to consider using what extra cash they have to invest in a bankruptcy.

A bankruptcy can relieve the burden of debt and give people the fresh financial start that they need for their futures.

Source: Worcester Business Journal, "Poll: Most will use tax refund to pay down debt," Emily Micucci, April 1, 2013

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