Five Ways to Get More Mileage Out of Your Tax Refund

1. Clear away debt. Average standard credit card rates are now running from 13% to 15%, according to Bankrate.com, and many store cards are well above 20%. Paying down your highest rate balances first can help you save substantial interest over time. Apply for a HCCU VISA Credit Card with rates as low as 9.9% APR to cut down on interest while you're paying back the balance!
2. Begin or add to an emergency account. Many financial experts recommend amassing at least three months' worth of expenses to offset a monetary setback or unplanned major purchase. By contributing to a liquid fund such as a money market account, you'll help avoid charging expenses and racking up debt (see above).
3. Invest long-term. If you have your debts under control and emergency cash on hand, the next best move may be to invest long-term for potentially higher return. You may want to leverage your investment even more with a tax-advantaged option, such as an individual retirement account or your employer-sponsored retirement plan. A 401(k) plan that offers matching funds is essentially a source of free money. Check with your financial advisor to help determine the investment options that are best for you.
4. Remodel to increase your home's value. Your refund may not cover the cost of a major remodeling project, but consider using it to hire a professional to help determine what upgrades could bring the greatest return if and when you decide to move. Check out the Cost vs. Value Report at www.remodeling.hw.net for average amounts recouped. Be aware that the amounts apply to homes sold within a year of the remodel.
5. Refinance your mortgage to a lower rate.  If you're paying more than the market rate on your home loan, you may be able to save money each month by securing a lower rate.  If you're currently renting but looking to buy, start a down payment savings account with your tax refund.