Home buyers vow to spend tax credit wisely

The recent extension of the $6,500 federal home buyer tax credit to existing homeowners stands to help the economy, according to a new survey by Coldwell Banker.

Only 6% of those 1,000 surveyed said they would splurge -- on shopping or vacations. Though no one wants to appear frivolous in a survey, especially in this era of frugality, the fact that 83% said they would put the money toward more humdrum expenses implies maybe they really meant it.

In all 34% said they would pay off debts, 29% would make improvements to their home and 28% even said they would put the $6,500 into savings.

As part of a political compromise, the credit -- originally reserved for first-time home buyers -- was extended early last month to anyone buying a home before April 30, 2010.

The survey also found that 20% of homeowners were more motivated to buy a home than they were six months ago because of the credit.