Pay Your Way Out of Debt with Your Tax Refund

With tax time comes an opportunity for many to finally claw their way out of debt. How, you might ask. Simple. Take that tax refund and apply it toward paying off your credit card bills rather than blowing it on some new extravagance.

The harsh reality is that the average credit card debt in the United States is $9,000 and the average tax refund is $2,100. If you fall within these averages categories, you obviously will not be able to pay off your credit card debt entirely with your tax refund. You can, however, put a large dent in your debt and start the ball rolling in the right direction.

Not only is this a great first step toward eliminating your debt, it also helps save you money in the long run. After all, the average credit card APR is 14%. On a $9,000 debt, that comes out to $1,260 in one year! And, that is assuming you do not continue adding to your debt during that same year. Worse yet, it might take you 30 years to finally get yourself out from under that debt if you pay just the minimum payment each month.

So, do yourself a favor and apply that extra little windfall toward repaying your debt. In the long run, you will be happy you did.

Beware of Phishing
To Pay or Not to Pay: Is it a Good Idea to Pay Your Taxes with Your Credit Card?
The Financial Dominance of the Credit Card Industry
Keeping Your Credit Card Safe
Traveling With Your Credit Card
A Look at Current Bankruptcy Laws
Fixing Mistakes on Your Credit Report
Flying With Credit Card Airline Miles
Get Stylish with Your Credit Card
Keeping Your Credit Report Clear
Modern Day Vending Machines
Using Pre-Paid Credit Cards for College Students
Making Sense of the Prime Rate
Protecting Your Credit Card Account Information
Reasons to Use a Credit Card Instead of Cash
Rising Minimum Payments: Friend or Foe?
Staying Out of Debt While Using a Credit Card
Pay Your Way Out of Debt with Your Tax Refund
Tips for Shopping Online With a Credit Card
Understanding Airline Miles Credit Cards
Understanding Cash Back Credit Cards
Understanding Prepaid Credit Cards
Understanding Rewards Credit Cards
Understanding Student Credit Cards
What to Look for in a Credit Card
What to Watch Out for in Pre-Paid Credit Cards