How Americans use their tax refunds

71% of Americans plan to save their tax refunds, invest the money or use it to pay off debt, according to the survey results, presented on Thursday by ING Direct USA.

Debt is weighing heavily on American minds. Thereby 46% of the respondents plan to use their tax refunds to pay off debt, and more than one third (39%) plan to pay off that debt this year. 

As Arkadi Kuhlmann, president of the Wilmington, Del., financial services company, said, in spite of being encouraged to spend their refunds to help stimulate the economy, Americans are choosing to save themselves first.

The survey results, represented by Western Union earlier this month, showed that 74% of Americans plan to share their tax refund with a friend or a family member in need as they feel generous toward victims of the financial crisis. Thus the research found that more than a third of consumers have lent money to a friend or a relative to help them out over the last six months.

Around 20% of the Western Union respondents said they have asked for financial help from family and friends in the past six months. 47% reported they would probably accept a support offer from a friend or a family member if needed.