Credit card debt to be paid off with tax return, survey says

The upcoming tax return could allow many Australians to pay off their credit card debt.

The majority of Australians are set to pay off their credit card debt with their tax return, according to one report.

The Officeworks Tax Time Survey - in which 1,000 people were questioned - noted that 54 per cent were happy about this time of the year and would be glad to get some cash back, Dynamic Business reports.

David Llewellyn, marketing manager for the company, said the study did seem to suggest that people were being cautious with their money after the global financial crisis.

He added that the majority of those surveyed will "pay off debt as quickly as possible, or spend their refund on sensible items like technology products".

More than a third (37 per cent) noted they were expecting a bigger tax return than normal this year which could allow them to ditch their outstanding Aussie credit balance.

Earlier this month, mortgage adviser and Smartline State manager Richard Bradshaw declared that to have between $30,000 and $80,000 of debt on credit cards or store cards is not unusual, the East Torrens Messenger reported.

By Mark Hornby