Poll re: my income tax refund

TJ123

Okay, so the preliminary numbers having us get a HUGE refund. Here are the possible options:

1. Pay off one major credit card (1/3 of total debt)

2. Pay off quite a bit of a credit card and put the other half in the bank

3. Take a very nice european trip this summer while we're still here

4. Some other suggestion

luvjon

2.  You never know when you'll need that savings.

But I once heard on Suze Orman that if you have debt, you should apply everything you can to that debt and not have a big savings bucket.  I don't necessarily believe that, I think you still need an emergency bucket.

scpteam20

I'd go with one or two, you'll want to get rid of that debt as soon as you can! You can always swing some type of trip one the debt is paid down.

LindsaymR

I'd say 1 or 2. I'd lean more toward 1 but depends on what you have in savings. If you are making big monthly payments toward this debt though then once it's paid off you can use that money to build savings.

julandjo

If you have enough in savings to survive a few months if you lost income, then definitely #1.  Paying interest on CC debt is about the least productive financial situation ever.    Pay that sucker off!

Huskerfanz

julandjo:

If you have enough in savings to survive a few months if you lost income, then definitely #1.  Paying interest on CC debt is about the least productive financial situation ever.    Pay that sucker off!

 

This unless 1 and 2 are different CCs.  In that case, pay the CC with the highest interest rate. 

SB&J

Pay off the CC, no contest.