Expense Management

Expense Management

April 03, 2013

Just Paying the Bills: People Spending Tax Refunds on the Basics

Remember when we used to think of our tax refunds as a kind of spring break bonus? Such days may be long gone.According to a recent survey by the communications company Cricket Wireless, nearly two-thirds of Americans are saying they're counting on their tax refund this year to pay the bills – up 50 percent from 2012. Every region in the U.S. has been affected by the mounting bills associated with technologies that are now considered basic household necessities – like a smartphone and wireless Internet.

The report finds that 65-percent of residents in the Northeastern region will be forking over their tax refund to pay the bills, with the same percentage doing so in the South. Sixty-percent of taxpayers in the Midwest are indicating they'll be spending their federal reimbursements on bills as will 59-percent of those in the West. 

People aged 18 to 29 – some paying taxes for the first time (and probably also paying bills for the first time), are feeling the pressure hard. The study suggests that 69 percent of this younger generation is reporting bills as a primary concern. 

A significant number of Americans feel that no matter what, they don't have much control over their wireless plans, and many voice that they feel overcharged for their smartphone plans. Towering penalty charges sway consumers to invest in high-data phone plans that they probably don't need.

Empathizing with the millions of people feeling trapped by their technology-related bills, Cricket Communications (News - Alert) offers its wireless phone services at a relative bargain. The company offers unlimited phone plans starting at $50 – half the price of wireless phone top dogs Verizon and AT&T (News - Alert).

Edited by Brooke Neuman

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