Experts advise using this year’s average tax refund of $2,852 to both pay off debt and save money.
How to Use Your Tax Return to Pay Off Debt and Build a Brighter Financial Future
This year, the average taxpayer is getting a refund of $2,852, and experts are suggesting the best ways to use this money. Courtney Alev from Credit Karma says that while it’s tempting to spend the refund on treats and it’s a good chance to focus on financial goals. Experts recommend using the refund to pay off debt and save money for the future instead of seeing it as extra spending money.
READ ALSO: Maximizing Your $2,852 Tax Refund: Spend, Save, or Invest Wisely – Must Know!
(photo: GOBankingRates)
A Balanced Approach to Paying Off Debt and Saving
According to the report of New York Post, people’s choices for their refunds vary. Emily Garcia and her husband spent their $1,000 refund on new patio furniture choosing to improve their home instead of paying down their mortgage. On the other hand, Megan McClelland who is now free from student loan debt, decided to use her $1,000 refund for travel which she would otherwise have charged to a credit card.
Financial experts like Matt Schulz suggest a balanced approach. They recommend using the refund for both paying off debt and saving money. This way, people can avoid falling back into debt and also build up a financial safety net. By following this advice and taxpayers can make the most of their refunds and improve their financial health in the long run.
