ECONOMY:
 

Study: Rebates to be applied to debts

Consumer survey says that many Americans would use tax rebate funds from a Washington stimulus package to help repay what they owe.

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Rebates: 'No boost to economy'
The stimulus plan is supposed to help the U.S. economy, but many plan on spending it in ways that would send the money overseas.

NEW YORK (CNNMoney.com) -- Americans who would receive a tax rebate under Washington's proposed economic stimulus legislation are most likely to use their rebate money to pay down debt, according to a consumer survey.

The UBS Securities-commissioned survey released by the International Council of Shopping Centers, Inc. found that 43% of the 1,000 surveyed Americans would pay off debt, while 26% said they would save the money and only 24% said they would spend it.

"Consumers see this tax rebate program similar to earlier ones and will act in a similar fashion using the lion's share of the rebate money for debt relief," said Michael P. Niemira, chief economist and director of research for ICSC in a statement.

"But still, about $25 billion will head into the spending stream and that is positive for the economy," he added.

The proposed legislation would return $600 to tax-paying individuals that earn under $75,000 annually and $1,200 to couples who make less than $150,000 as part of an economic stimulus plan. To top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.