Tax Refunds & Advice

Have you received your economic stimulus check yet? If so, you may have already spent this money on one thing or the next. If not, you are probably thinking about what you are going to do with this money when it finally arrives in your bank account or the mailbox. Why not pay down debt with your stimulus check? For many, this $300 or more will go a long way in getting rid of stressful debt.

What type of debt can you pay down with your stimulus check? There are many answers to this question. Most commonly, consumers who decide to use their check for debt are going to turn to credit cards. How much credit card debt do you have? If you can cut into this by using your entire stimulus check you should consider doing so. No, this is not going to be fun, but it will definitely help your financial situation. Remember, when you pay down your debt you are saving yourself a lot of money in interest charges.

Of course, debt comes in many different forms. You may want to put your stimulus check towards your car payment or mortgage. Believe it or not, one extra payment of $600 can shave several months off of your term. Who wouldn’t like to pay off their car or home a bit earlier than expected?

While the government is hoping that the majority of consumers will spend their stimulus check recklessly, many know better than to do this. If you do not immediately pay down debt with this money, you may want to consider saving it in the bank for future expenses. There is nothing wrong with spending this money on something fun, but if you have more pressing issues, such as debt or building an emergency fund, you should take care of these areas first.