Most Canadians plan to use tax refunds to pay down debt

With the majority of Canadians expecting or having already received a tax refund, a CIBC poll finds that most plan on using their windfall to pay off credit cards, debt or bills rather than saving or investing it.

Of the 54% of Canadians expecting a refund this year, 22% plan to use the refund to reduce high-interest debt such as credit cards. An almost equal number (21%) don’t know what to do with it.

Here’s what they also plan to use their tax refund for:

  • 19% will use it for day-to-day expenses (e.g., groceries, bills, gas, etc.);
  • 10% plan to contribute to investments;
  • 9% said other;
  • 7% will put it toward a major household purchase (e.g., appliances, furniture, home repairs);
  • 5% plan to travel;
  • 3% said they’ll splurge a little (e.g., clothes, jewelry, electronics);
  • 3% will pay down their mortgage; and
  • 2% preferred not to answer.

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