Tax season is upon us and many Americans have a big incentive to finish their tax return; a four- figure refund check coming from the Internal Revenue Service.
You likely have an idea what you want to spend your tax refund on but here are a few possibilities to consider.
If you’re carrying credit card debt, your tax refund can help pay it down. If your refund doesn’t cover the full amount owed, it may at least take care of a significant amount. This will not only relieve some of stress associated with debt, but it will also save you on interest and help improve your credit score.
Life is unpredictable. It’s a good idea to have enough money saved to cover a vehicle repair or medical emergency. If you don’t have an “emergency fund” or “cushion” built up, use your tax refund to start one.
If you’ve been thinking about buying a new car, now is the time. You can use your tax refund to purchase a great used vehicle and avoid having to take out an auto loan. Using your tax refund to purchase a car will get you on the road without the pressure of a monthly car payment.
If you already have a vehicle, it may be a good idea to use your tax refund to pay for insurance. Whether you’re making a down payment on insurance or actually paying your insurance up for several months, it’s always a good idea to use part of your tax refund on insurance.
If you have all your bases covered, use your tax refund to treat yourself or your loved ones – but do so responsibly. Make sure to look for the best deal on whatever purchase you’re planning to make so you can save as much as possible.
If you need insurance, call your local Acceptance agent today. With coverage for every aspect of your life and payment plans to fit any budget, they’ll find the products that best fit your needs.