How to make your tax refund work for you

(InvestigateTV) — If your tax refund is sitting in your savings account right now, a debt relief attorney has some ideas on how to make that money work for you.

Leslie Tayne, a debt relief attorney, said create a plan for that money. If you have high interest debt, maybe a lot of credit cards, look to knock it out. It could be the best gift you give to yourself this year.

“Try to pay that down as soon as possible. Interest rates on debts are over 20 percent, so if you have high-interest rate debt it’s important to consider paying that down sooner rather than later because you’ll ultimately pay more for that money for whatever you borrowed or charged on that card,” Tayne said.

Tayne said if you have the need for an emergency fund, your tax refund could help you get it going. With how expensive everything is, she said having extra cash on hand is helpful.

Ideally, you want to have three to six months of living expenses in the bank. She recommended making it a goal to put more money away this year and use your tax refund as a jumping off point.

“Doing something nice for yourself doesn’t always mean that you’re taking the money and buying yourself something or that you’re going on vacation. It could mean that you’re paying off debt that you have. It’s a feel-good moment when you pay off your student loans, when you pay off a car, or let’s say you financed furniture for your apartment or home,” Tayne said.

Tayne said if you’re not living paycheck to paycheck and have little debt and an emergency fund, you could also consider making a charitable donation to your favorite group and use that as a tax write off for next year.