According to FedSmith.com, the average refund paid to taxpayers in 2017 was $2,878.00. Whatever your refund amount is this year, why not put those dollars to work and get ahead?! Here are a few ideas:
- Is credit card debt keeping you awake at night? Why not use that return to help pay down your credit card balance, or pay it off completely. If your current card doesn’t offer benefits, transfer the balance to a card with lots of rewards, low introductory interest rates, and perks just for using your card. Spending money by using this type of card can be fun and economical.
- Reducing the principal on your home mortgage can dramatically affect the life of the loan. Think about using your refund to shave some years off the loan, while saving money in interest. It might seem like a small amount today, but even the smallest amount can make a dramatic difference down the road.