WWYD with tax refund?

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iVillage Member
Registered: 03-25-2003
WWYD with tax refund?
7
Sun, 01-11-2009 - 11:01pm

DH and I are expecting a decent-sized tax refund this year (I hope we're not wrong). I plan on putting most of it toward debt/EF. If we're getting as much as I'm guesstimating, we'll have some options. We need to pay off our 90 days same as cash card that we had to get to pay for brakes on both cars 3 days apart. that should be no problem. After that, we might still have enough to pay off one of our cars. On one hand I'd love to have it paid off because it will free up $250 a month that we can use for our debt snowball. OTOH, that's our lowest interest debt and it will be paid off in October anyway. The other option would be to put a lump sum on our evil 28.99% CC to get it paid off that much faster. I don't think we'll get enough to pay it off completely, but we should be able to make s huge dent in it.

WDYT? Pay off the car or put it toward the CC?


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iVillage Member
Registered: 09-07-2003
Mon, 01-12-2009 - 12:00am

Personally, I would probably put it toward the CC.


Teresa
http://www.affordingpickles.blogspot.com

iVillage Member
Registered: 04-28-2007
Mon, 01-12-2009 - 12:53am
IAWPP to pay off the CC. im not an expert in paying off debt or anything but that would just really stand out to me as something id need to get rid off with that high of an interest rate and you being so close to paying off your car anyways

 


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iVillage Member
Registered: 03-26-2003
Mon, 01-12-2009 - 5:03am

If it was me and I had $1000 in my emergency fund, I would apply it to the next debts on my list. We went from smallest to largest to pay everything off, so that's the order in which I would apply the money.

Sue


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Registered: 03-27-2005
Mon, 01-12-2009 - 7:51am

Pay off the credit card.

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Registered: 07-05-2006
Mon, 01-12-2009 - 8:59am
We have one last credit card in collections with a balance of 4400. They have offered to settle with us in the past for 3500 but we have never had the money to do it. I honestly have no idea how much I'm getting back this year but I'm hoping it's at least a thousand dollars because it has been at least this much in the past. My plan is to use this thousand dollars to start negotiations with the credit card. I know that before they will set up a payment plan, you have to have a lump sum to work with. I'm very excited to start these negotiations because it's my last one in collections. I hate dealing with collectors and lawyers but it's even worse dealing with them when you have no money! I can't wait for my refund!!!!! And here's to hoping it's more than a thousand! The reason I don't know is because we took out a 401K to keep from going into foreclosure this year and they will make us pay penalties on that! And I usually have so many forms I need to wait for! That's the worst part, waiting for those forms to roll in so you can start doing your taxes.

iVillage Member
Registered: 11-14-2008
Mon, 01-12-2009 - 12:23pm

Ultimately you will have to decide when you see how much it is. It may change 5 or six times in your mind until you actually receive it, but don't stress. It sounds like you have very good intentions either way. I would stay away from the car loan though. Let that one play out on its own. Increase your peace of mind with the efund( a little) and knock down the credit card debt to avoid the stupid interest with the rest. That is my vote. Ps. I hope I get some back too. That would make me very happy! So cheers to both of us and better 2009!



iVillage Member
Registered: 07-25-2008
Mon, 01-12-2009 - 1:19pm

I plan on paying our signature loan off and that would free up $193.08/mo and we'll just save whatever is left.


We don't have an EF yet so we need to start working on that.

Taking it day by day...

Taking it day by day...