Tax refund season is in full swing. Millions of taxpayers are anticipating direct deposits and paper checks to be sent in mass amounts over the next few weeks. In receiving your tax refund, especially for those $1,500 and up, what is your intention? Some of the top intentions include:
- Pay off credit cards
- Buy a car
- Buy new furniture
- Buy new appliances
- Vacation
Just as many of you are awaiting to use your hard-earned funds, so are retailers. You may see car dealerships offering to file your taxes for you--you would want to take a pass on this. Borrowing against your tax refund can come with extraordinarily high fees and the highest interest rate available in the state. During this time it is best to hold off purchasing a car or advising the dealer you do not need tax filing assistance during your shopping. Review blue book value versus dealer demand.
Paying off credit cards is a valuable option for your refund, but there is a question to determine the worth. Do you plan on reusing it? If so, paying it off may be pointless, but a larger payment can reduce your balance, without depleting your full refund to end up using the card again. If your refund will pay off the credit card and you have scissors ready-pay and cut away.
Furniture and appliance stores also know this is the time of the year for buyers to come alive. Once again deny the requests to file your tax returns, and instead ask about deals and specials. Compare shop to other stores to see if the same brands are available. Scratch and dents offer a lot of value with an affordable price. Just because the starburst coupon screams 50-percent off, does not mean it is off the price seen thirty days ago.
Be diligent and cautious when spending your hard earned money. Determine the path of proper disbursements. If you are a homeowner, consider an extra full payment towards your mortgage. Sending in one extra payment once a year can reduce your mortgage term by ten years. That is a beneficial aspect for your refund.
Visit a local grocery store or store that offers fuel perks and load up on gift cards while adding to gas usage can save you, and provide you gift cards for later use or as gift giving. There are savvy individuals who take to buying Holiday gifts early on to tuck away for later. There are a multitude of options, take your time and carve out consideration on how and when to spend.
As far as a vacation? Society is typically overworked and borders on significant stress. Enjoy your vacation time and never regret the time to press reset!
Happy savings!
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