Are you getting a tax rebate (not a refund) from the IRS this year? If you are, I’m sure you’ve got hundreds of ideas of what to spend it on.

Don’t.

If you have credit card debt, you’re paying an arm and a leg in interest by not paying it off. If you pay 19% in interest and you’re only making minimum payments on $600 of debt, you’ll pay over $250 in interest by the time you pay it off! That’s 42%! Using your rebate to pay off that debt is like investing in the stock market and seeing an instant 42% return! That’s unheard of!

No credit card debt? Bravo! Give yourself a hand. Pat yourself on the back. Fund your retirement!

If you don’t have a retirement account, open one! IRA accounts offer an immediate tax break, on top of being a wonderful use for an extra few hundred dollars!

Either way, IRS tax rebates are money best spent on your future!

This entry was posted on Wednesday, April 30th, 2008 at 12:04 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.