Theres no question that applying your tax refund toward your outstanding debt is wise. If you owe more money than your refund will pay off, however, you may soon be faced with some important choices.
Which debts should you pay off first? Should you try to knock out one large debt or several smaller ones? Or, should you pay all of your debts down a little?
Here are two different approaches to help you decide which debt-elimination option is best for you:
Option one: Pay down debt that hurts your credit score
If youve decided to use your tax refund to pay down your credit-card debt, youll probably want to start at the bottom and work your way up.
This means you should try to pay off the credit car…
Read the full article at: https://www.seattletimes.com/business/paying-down-debt-with-your-tax-refund-heres-how-to-get-the-most-bang-for-your-buck/