Latest Posts
Home > Ask The Get Out of Debt Experts > I Want to Use My Tax Refund to Pay Down My Debt. – Laurie

I Want to Use My Tax Refund to Pay Down My Debt. – Laurie

“Dear Steve,

Okay you asked, I have my five credit cards($850),
($550) an overdraft, gas card, timeshare, 2 car loans and a mortgage. I also have to pay my property taxes for my home($1050) and the time share($883). I want to knock out 2 cards one both under $150, and try to pay down my overdraft($1200) and bank credit card ($3250). I don’t know how much I am getting, I made a little more this year than last, so I am guessing around $5k. I wanted to save something.

What should I pay off and what can I save?



Dear Laurie,

We can make this hard, but I prefer the easy and lazy way out of debt. I would suggest that you follow the debt snowball method of reducing and eliminating your debt. Follow the debt snowball link for information.

If you are getting a huge refund like this that tells me you are having too much taken out of your check each month. Consider increasing your deductions to reduce the tax taken out each payday. The goal is to break even at the end of the year and I’m positive you could use the extra cash each month to reduce your debt.

What ever you get in your refund, put 1/3 in a boring old savings account for an emergency fund, use 1/3 to pay down debt using the debt snowball approach, and the last 1/3, go blow it and have a good time, really. It’s perfectly fine to mix a little fun with debt reduction. That’s what makes life worth living.

Get Out of Debt Free Hotline
debt settlement helpstudent loan help

About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • timeshare scams

    great advice steve! thanks for sharing!

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.


I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.

  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.