Tax Rebates & Refunds

How to capitalise on your tax refund

June 14, 2011
Posted in Tax Rebates — Written by Jennifer

People normally think that a tax refund is free money which they get at the end of the year. However, they fail to realise the fact that it is their own hard earned money. Most tax payers tend to spend their tax refunds on lavish luxuries.

Tax refunds can be beneficial in many ways. The proper investment and utilisation of available resources can help you to form a base for a secure future. If you are looking to maximise the gains on your tax refunds, refer to the tips mentioned below.

Down payment of debts

You can pay off your credit card debts using your tax refunds. You can lower the balance that you owe to the credit card company if you get your tax refund. Similarly, if you get a good rebate amount out of your taxes, you can pay off money and save a lot of interest. One must keep mind that banks and companies that offer credit cards charge a good percentage of interest on the amount of money you owe to them.

Make an emergency savings account

If you are lucky enough to not have debt hanging over you, you can use your tax returns for making an emergency account. This will put you in a stronger position and will help financially in case of emergencies. Many banks provide a good percentage of interest on their savings account. Thus, you can enjoy the benefits of these schemes and cash in on your rebate. Tax rebates are a good investment tool, but only if they are utilised wisely.

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