What to Do with Tax Rebate Check

Posted by L. Marie Dubuque Apr 28, 2008

A recent USA Today article talks about all the retaiers offering a 10 percrent bonus if you spend your tax rebate check with them. It's tempting alright. And maybe a good idea IF you have no credit card debt. But if you are one of those people who carries a balance very month, you should pay off your credit card debt and stay away from shopping malls.

What Else Should You Do with Your Tax Rebate Check?

• Save or Invest. Granted, the stock market is volatile and interest rates are low. But remember, consumer goods generally depreciate and at least if you stash your money in a CD or money market, you'll be making a little interest. The best thing to do? If your company offers a 401k invest in that or put more into your IRA or Roth IRA.
• Pay off Your Mortgage. If you can finish paying your home loan sooner, you'll save thousands in interest. Even in a declining housing market, if you own your home free and clear you're well ahead of the game.