The Internal Revenue Service confirmed this year they will be beginning to process tax returns on January 28th, 2019. For many people tax returns are a great way to save some money throughout the year. Others argue you should be able to adjust your tax forms in such a way that you don’t get a return. They believe getting that getting money back in the spring means you were loaning that money to the government interest-free.

If you fall into the first category, you are probably thinking what to do with the money from your tax returns. It’s always a good idea to plan ahead, this way you will not spend the money on your first shopping impulse. Most people save their money for one big yearly purchase, in many cases, this falls under the category of home renovations, vacation plans or paying off debt.

For those looking to use their tax returns to pay off some of their debt, we have some suggestions to help you come up with a good financial strategy. The first thing you will need to do is answer the following questions. After you have answered these questions, you will have the information you need to put together a plan to help you reduce or eliminate any outstanding balances.

  1. Do you have a savings account or emergency fund? Put some money away for a rainy day!

Before you start paying off debt, make sure you have enough money in your account for emergencies. It’s hard to save money when you have debt or you are living paycheck to paycheck. Having some money put away will help you overcome any financial obstacles that may present themselves. Using this money in case of emergency will always be a better alternative than maxing out a credit card.

  1. Do you have any debts, and do you know what the interest rates are? Understand how much money is going towards your big debts.

Most people have one or several debts that take up most of their monthly income. In many cases, these debts are related to a mortgage payment, car loan or student debt. Understanding how much your balance is, and what the interest rates are is a good way to make sure you can afford those with the money you are bringing in. Knowing is half the battle, in most cases, you will be able to refinance these loans to make sure they continue to be affordable.

  1. Do you have credit card debt? There are solutions to help you lower or consolidate this debt.

Many financial companies offer different solutions to help you deal with credit card debt. If any of your cards is close to it’s spending limit, this will hurt your credit score and build more interest. Take a look at the different APR rates your credit cards offer. If one of them has a low or 0% APR, you can pay off the balance of other cards with a higher interest rate. Other available options to help you consolidate this debt can be personal loans, depending on the amount of money you owe. For more information about the personal loans American Acceptance offers, go to

Taking the time to consider these questions, will help you make a smart decision when you received some money back from your tax returns. Managing your debt is one of the best moves you can make to manage your spending and take advantage of any opportunities to save money in the long run.

If you are looking for some financial advice and alternative ways to manage debt, contact our team at American Acceptance. Many of the services we offer may be the solution you are looking for.