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.
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.