Infographic: More taxpayers reaching for credit cards
By Kristin McGrath and Juan Rodriguez | Published: April 8, 2013
Almost three-quarters of Americans who owe taxes are planning to use checking accounts or their savings to pay taxes this year, according to the latest American Express Spending & Saving Tracker survey -- but a growing number will be reaching for their credit cards. Fourteen percent say they'll pay taxes with plastic this year, compared with 7 percent in 2012 and 10 percent in 2011. Meanwhile, 7 percent will use credit card reward points to pay down at least some of what they owe to Uncle Sam, compared with 1 percent in 2012 and 3 percent in 2011.
AmEx surveyed 1,518 adults between Feb. 27 and March 1, 2013. It also asked consumers receiving refunds how they will spend that extra cash. Many plan to use their refunds to improve their financial picture, either by paying down debts (37 percent) or padding their savings (26 percent). However, 28 percent plan to spend their refunds on travel, their families, home improvements or a big-ticket item.
The chart below shows survey participants' planned payment methods for the taxes they owe in 2013.
See related: 9 smartphone apps to help with taxes
To use the graphic on your site, use the following code:
- Poll shows people use their credit cards for everyday needs – Using cards for to earn rewards and as an emergency cushion are also common ...
- Wallets get thinner as U.S. consumers avoid cash – With mobile apps gaining traction as an accepted way to pay bills and other people, cash is taking up residence in fewer and fewer wallets ...
- Infographic: Millennials' financial acumen is slipping – Money smarts fall among young adults, survey shows ...