With the average tax refund rising to $2,852 this year, experts recommend using it to pay down debt and save, despite some people choosing to spend it on personal items or trips.
How to Use Your Bigger Tax Refund Wisely – Balance Paying Off Debt and Saving for the Future
According to the New York Post, many people are getting a bigger tax refund this year, averaging $2,852. Experts say it’s smart to use this money to pay off debt or save, but some people decide to spend it on things like furniture or trips. For instance, Emily Garcia used her refund for new patio furniture, while Megan McClelland is using hers for travel since she is now debt-free.
Financial experts suggest that it’s best to balance paying off debt with saving money. If you only pay down debt without saving, you might end up in debt again when unexpected costs come up. Matt Schulz from LendingTree says it’s important to do both: pay off loans and build some savings.
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Maximizing Your $2,852 Tax Refund: Spend, Save, or Invest Wisely (PHOTO: NDBT)
Expert Advice: Use Your Tax Refund Wisely to Enhance Your Financial Future
Overall, even though it’s tempting to spend your refund right away, experts recommend using it to improve your financial situation. Courtney Alev from Credit Karma advises that using your refund wisely can help you achieve your financial goals in the long run.
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