It is that time of the year again. Many of us are expecting that IRS kickback, or refund, whichever way you want to look at it. Unfortunately, a great deal of Americans look at their refund as free money; unhindered by everyday concerns such as bills. That is a huge mistake if you want to get your debt and monthly payments in hand for the remainder of the year. Here are three of the best places to spend your tax refund.
- Credit card debt is the best place to start. If at all possible, pay off all balances and keep them under 25% of your available credit limit for the rest of the year. As an added benefit, you should see your credit score rise.
- Another place to look is your car payment. Is the balance low enough to pay off or can you get a payment ahead then refinance for a lower interest rate and payment?
- Look to your mortgage? Make a lump sum payment if possible or use your refund to pay the fees associated with refinancing and lower that payment.
These three tips assume that you do not have any late payments due. In the event that you do, then bring as many of those up to date as possible. That is not to say that you should not splurge a little, just keep it to around 10% of your total refund and you will be able to enjoy yourself and be financially responsible. This should hopefully help you avoid having to look into NC debt settlement and NC credit counseling options.