I am getting a couple of grand back on taxes and want to know what I should spend it on. I want to pay down by debt as much as possible. I have a car loan that is about 4,000 and credit card debt that is around 1,500. What would you do with the refund?
2007-02-07 07:05:30 · 11 answers · asked by nathanscottb 2 in Business & Finance ➔ Taxes ➔ United States
It would depend upon the percentage rates.
Generally, credit cards are higher percentage than car loans so I would pay those off first and apply whatever was left to the car loan.
Ultimately, pay off the higher percentage items first.
2007-02-07 07:29:06 · answer #1 · answered by nova_queen_28 7 · 0⤊ 0⤋
Pay off as much debt as possible. Look at the interest rates of the loans and pay off the higher ones.
2007-02-07 07:08:57 · answer #2 · answered by Dizney 5 · 0⤊ 0⤋
The credit cards probably have higher interest rates than the car loan. Verify that that's the case, then put your refund money on whatever has the higher interest rates.
2007-02-07 13:10:27 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Pay down or pay off the debt with the highest interest rate first.
2007-02-07 07:11:53 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Pay the credit card debt, it probably has higher interest. Good for you. Congrats.
2007-02-07 08:09:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Always pay down debt. Why pay more in interest?
Also, it might be wise to update your W4 with your employer to reduce the amount of your withholdings during the year. The govt. gets to play with your money all year for free!
2007-02-07 07:08:17 · answer #6 · answered by Molly 6 · 1⤊ 0⤋
pay off the credit card and put the rest in the bank for a rainy day.
2007-02-07 08:01:56 · answer #7 · answered by DaLab 2 · 0⤊ 0⤋
i grew to become into informed by my tax preparer that in case you % direct deposit for you tax refund, it is going to take seven (7) days to attain your account no remember which day you document. So in case you filed your taxes on a Tuesday, your refund might desire to be deposited into your account right here Tuesday. desire this facilitates.
2016-09-28 13:36:38 · answer #8 · answered by ? 4 · 0⤊ 0⤋
If i were you I will payoff the account that has the highest interest rate...this will save you money in interest. The rest can go to the next bill. Hope this help.
2007-02-07 07:11:03 · answer #9 · answered by latinatwix28 2 · 1⤊ 0⤋
pay the credit card debt first. always pay the smallest off first, then you can pay off the large one off faster.
2007-02-07 07:10:37 · answer #10 · answered by indiana girl 2 · 1⤊ 0⤋