Hi all - just curious, do any forum members plan on using some or all of their tax return to pay back old credit debt? I'm working on a new blog on staying frugal during the tax season and, while this idea sounds good in theory, I wanted to hear from real people that actually plan - or don't plan - on doing this. Past and present experiences are welcome! Thanks as always. Jason
I don't, but all of the trashcan liners that I get in the mail seem to want to offer me the same financial advice...
I have used my tax return in the past to pay off some credit card debt. I think it was helpful to get back on track and pay off some debt. Now I owe the IRS money so I won't receive any money back this year. Thanks! Heather with BoostMyScore.NET
I was told by a co-worker that a sizeable income tax refund was actually a interest free loan to the federal government. I then tweeked my withholding to end the year with low refund amount. That way I can utilitze this money all year long.
mijd -- agreed. I rather keep my refund down to a minimum and instead get that money back in my monthly salary and in turn use that money to pay down credit cards/car loans, etc. that charge interest rather than giving my money out on, as you said, interest free loans.
Thanks everyone! I still like the "big" (big is a little overstated) refund check at the end of the year, but it's nice to hear from some outside perspectives. Very helpful!
