Tax Rebates for Paying Down Credit Card Debt

Released on: February 26, 2008, 9:19 am

Press Release Author: John Janney / National Financial Awareness Network, Inc.

Industry: Financial

Press Release Summary: Many consumers will likely use their tax rebates for debt
repayment as being debt-free is the top New Year's Resolution for 2008.

Press Release Body: Representatives from the National Financial Awareness Network
are predicting that consumers will use their tax rebates to pay down debt instead of
spending it on goods and services.

The number one 2008 New Years resolution selected by respondents of a December
survey from FranklinCovey is to eliminate debt, beating out losing weight,
exercising, getting organized and spending more time with family and friends.
Another study by personal goal setting and management service reveals
that 52 percent of its users list being debt-free as their top personal finance goal
of 2008, up from 26 percent last year.

John Janney, president of NFAN, predicts that most taxpayers will use their upcoming
2008 tax rebates for debt reduction rather than to purchase goods and services.

"The expressed purpose of the tax rebates is to stimulate the economy by giving
consumers a little extra cash to spend," Janney explained. "However, it is more
likely that taxpayers will use these funds to reduce debt because debt has become
such a financially crippling factor in our lives."

NFAN senior financial literacy writer Maggie Beetz added that gasoline prices,
rising credit card debt and ballooning mortgage payments are pushing consumers into
a financial corner that leaves little room for doing anything other than to use the
tax refunds and rebates to pay down debt.

"The cost of living in America is far outpacing wages and our consumer debt is
continuing to skyrocket," Beetz explains. "We are being squeezed from all angles and
any extra cash is best used to ease the burden of debt."

Janney said that the sudden surge in debt payments may temporarily stave off
delinquencies and charge-offs, giving creditors temporary relief in the wake of
recent troubles. However, he cautions the credit crisis will continue to escalate
under the pressure of a consumer population overly burdened with a sluggish economy,
debt and unfair credit contracts.

About NFAN:

The National Financial Awareness Network, Inc, is a financial literacy company that
offers educational products and services related to personal finance, such as the
popular Do-It-Yourself Debt Settlement Kit, at The New
York State Banking Department lists NFAN's in their Financial
Educational Resources Directory. For more information, please visit their website at

Web Site:

Contact Details: John Janney
National Financial Awareness Network, Inc.
9212 Berger Rd.
Columbia, MD 21046

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