Smart Money Moves for Your Tax Rebate

6 Smart Money Moves for Your Rebate

While we questioned just how effective this whole band-aid approach would be, if the government wants to put a little extra money in our pockets, we'll take it, right?

But we want you to be smart about what you do with it.

If you're in great shape financially and don't have any debt to pay down, college educations to fund, cars to buy, etc., by all means - spend it! Enjoy yourself. That's just not the reality for most of us. We can use this money to do some serious good.

So what exactly should you do with the money? Here are our top 6 suggestions for the smartest ways to put it to good and meaningful use:

1. Pay down your credit card balance as much as possible. Think about this. If you're part of a couple with $10,000 in credit card debt and you apply your $1,200 right to that balance, you're paying off more than 10% in one fell swoop. That's huge! And it will save you a ton of money in interest over time. You'll be in much better shape financially than if you spend that money.

We have a ton of resources on Dolans.com to help you with your credit card debt, including:

• How to Pay Off Your Credit Cards in One Year
• The Dolans' Debt Clinic
• What Is the Impact of Making Extra Payments on My Debt?
• How Long Will It Take to Pay Off My Credit Card?

2. Get ahead on your mortgage payment. This is especially true if you have one of those adjustable-rate mortgages that caused the whole sub-prime crisis. If you are in danger of not being able to make your payments, don't even consider any other option for this rebate.

For more of our advice, see:

• Mortgage Meltdown
• Slice $300 a Month Off Your Mortgage
• Adjustable Rate Mortgage Calculator