Danville Businesses Look Forward To Tax Refund Spending
Danville, VA -- It's always nice getting some extra money for your tax refund but some businesses really depend on you getting that cash. That's because a lot of people will spend their tax refunds right away.
While many people save their tax refunds, a large percentage spend it. And for some businesses like Riverside Pawn in Danville, this helps their bottom line. They say people come in every other day lately looking to get something with that cash.
The shelves look bare at Riverside Pawn. But through their eyes, it's a good problem to have.
"We can't keep it or put it out fast enough because they are buying it so quick," said Brad Turner, manager of Riverside Pawn.
Since mid-February, Riverside Pawn has seen a huge increase in sales, up nearly 30%. All thanks to customers looking to spend their tax refunds.
"People have taxes, money and we have a lot of the items they are looking for," said Turner.
Turner says their number one item for tax refunds is always televisions. But anything that people buy as a gift to themselves sells.
"It's good for us," said Turner.
But, is buying a TV or a computer really the best thing to do with your extra cash? Financial advisor, Jim Abercrombie says it depends on your situation.
"If someone is way in debt they might want to pay as much towards it as they can. But if they are not having a problem with their monthly bills, reward is always nice because you want to enjoy some of it also," said Abercrombie.
Abercrombie explains what everyone should do is use the money to increase your net worth by investing or paying down debt.
"I try to make sure they do something meaningful with it," said Abercrombie.
Riverside Pawn employees say now is when the sales start to slow down again. They say their second best time of the year for sales is Christmas time.