Question

So tax refund question.  will you be putting 100% of your refund on your debt or will you be saving it?So tax refund question. will you be putting 100% of your refund on your debt or will you be saving it? Asking cause we're anticipating about 10k coming in and our current credit card debt is about 16k, car loan about 15k. We also want to buy a house within the next 12 months so kinda unsure what would be the smartest move. We've been pre approved already before so we know what our buying power is, but also know we need to stack for a good downpayment to keep the mortgage in a comfortable range. Thoughts?  

Answer 1

We didn’t do either. It all went to vacation.  

Comments

@hierarchy the thought crossed my mind cause we do want to take the family to Disneyland but it would feel better debt free

Answer 2

I put most of my profit sharing and refund to paying off debt. I also had to purchase a new used car because we were in an accident so 3900 went to that.  

Answer 3

Yes do you have money saved to put down? Is so I would personally throw it all at credit cards.  

Comments

@linkage not much at the moment, but working on it

Answer 4

5 grand went to debt. 4 grand went to savings.  

Answer 5

I’d put it towards debt. Last year I built a house. When We first signed on it, our payment was going to be around 2000 a month. Over the 6 months that our house was being built we paid off thousands in debt. Our credit scores shot up so when we officially signed on the house with the bank, they were able to get us a way lower rate and now our payment is $1700 a month. That’s $300 a month because we paid off some debt.  

Answer 6

Ours went to our kids 529, it will now be fully funded so that monthly money that was allocated to 529 will be going to the mortgage. (Our only debt)

Answer 7

We did 1/2 to savings and 1/2 to debt but it wasn’t that much. I wouldn’t want to buy a house having that much debt so I would pay off at least your CCs then save up an EF and down payment before buying. Owning a house is expensive! So many people that I know buy a house and then have a major repair that needs to be funded within a few months of moving in.  

Answer 8

I just used mine to pay off our car as it was the highest monthly payments. I Focused on one debt and now we have the ability to use those monthly payments to put towards CC’s.  

Answer 9

I would definitely pay it all toward credit card debt.  

Answer 10

I’d pay it towards debt if your budget is tight or put it towards the down payment if not. Additionally, there are a lot of little things I didn’t plan on when I bought my house in August

Answer 11

I’m putting some towards debit and rest towards savings

Answer 12

I got back $2500, I put $500 in savings towards car repairs that may pop up, and sent the rest to my student loans