Income Tax Refunds: What can they really be used for?

As income tax season rolls around again, it's got me thinking: what do we really use our income tax refunds for? Do you have the liberty to apply the extra money to debt? Or along with this debt relief plan do you need to put it towards other bills or necessities?

If you're unsure on what exactly you should do with your income tax refund, take these options into consideration:

• First, try to figure out what other outstanding bills need to be paid.
• See if there is a deadline required to ensure a certain APR or to avoid a finance fee on an account if you are unable to pay within a certain time frame.
• If your situation allows it, try to keep some of the remaining income funds available to help pay your regular monthly bills.

These would be prime opportunities to just apply that extra money. By taking this one big step you can continue to remain focused on your monthly Debt Management Plan payments.

As we know, we are in this plan for the allotted time; though we may want to finish sooner, we have other accounts that we must deal with monthly. With all these precautions by paying early, it will help us in the end. We can watch our credit scores rise!!!

Benefits of utilizing our income tax refund:

• Our credit will rise, rather than drop
• We can afford to change phone carriers mid-contract
• We can address hospital bills that have not been paid

I know this for a fact: I plan on utilizing any money that is owed to me to clear these additional debts. My credit score was 713, but I was unable to make my car payment one time. Then, while using Quizzle to view my credit score, I saw it drop 44 points, down to 669.

Though I am not happy about these changes, I am going to work even harder to get to where I was. I will remain focused on the main objective, and complete my plan. Take all of these CareOne resources and gain some additional knowledge, so you do not make the same mistakes I have.

Kelly Rockafellow

Kelly is enrolled in the CareOne Debt Management Plan (DMP). As she and her family approach the end of their plan, Kelly is going to share with the community what has made her stay on track and remain motivated. Kelly runs a business from her home and is anxiously waiting to successfully complete her plan so that she and her boyfriend can get married. Follow Kelly's story under the My Journey out of Debt blog. Compensated CareOne Debt Relief Services blogger.

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