It's Tax Refund Time!

Brian Sullivan

Millions of Americans will be receiving an average of $2,000 for this year's tax refund. The question now is: What should they do with their money?

Many will take vacations or purchase something for themselves, others, or something for their home. Many people put these purchases on their credit cards while they wait on their return, with the full intent to pay off the balance when the bill comes. But we all know: life happens, and other things come up, and the money can end up going other unexpected expenses. Then you are left with a balance due, plus an average interest rate of 18 percent. You can avoid the trap of paying credit card interest by trying these simple tips:

Don't spend it until you have it!  Do not make any obligations for your refund until the check is in the bank.
 
Put it in a separate account. Once you receive your refund, put it in a new account that you can access with a debit card. By doing this, you are keeping your refund separate from your ordinary account and it is not lost in the muck and mire of your usual and unexpected monthly expenses.

Now with debit card in hand, you will be able to make those vacation commitments or make those planned purchases. You will stay on budget and avoid those pesky never-ending interest charges. Enjoy and have a great Tax Refund Season!

Brian Sullivan
General Sales Manager
Prosperity Partners, Inc.

A: Peter the Great of Russia. He also taxed hats, boots, beehives, basements, chimneys, food, clothing, birth, marriage, and burial.