The New Year is in full swing and with it comes tax season. It’s one time of year that there may be less of a need for cash advances, online payday loan or credit card use to increase. Congress had us all worried for a bit, but they managed to get the job done in the 11th hour. The IRS worked hard to revamp and update all the changes and with the initial filing date pushed back a bit, hopes to have a smooth season. So how are the rest of us taking it?
Let’s hope the rough start will not make any difference to a taxpayer’s story. Most people count on their tax return to payoff holiday debt, pay property taxes, pay down debt or even splurge for a trip or large purchase. I guess it probably isn’t such a coincidence that the biggest car sales coincide with tax season. If you are going to be taking advantage of one of the great deals this quarter, keep cash advances and credit cards out of the picture.
A cash advance will not support a large purchase.
If you are looking to make a big purchase this year, refrain from using your tax refund for other things and tuck it into your savings until the buying time begins. Take advantage of the sales and comparative shop. The deals are great, but the savings will be greater when you keep from using long-term money solutions.
Work your maximum budgeted allowance for your purchase. Whether it is a new car or furniture, the sales will be great, and it may tempt you to spend extra. Great deals have a tendency to do that. When you need a new bed and walk out buying the whole bedroom set, you probably will not be saving anything when the remainder is charged on credit. Just because it is on sale, it doesn’t mean that you need to buy it, especially if your income does not support a fast payoff.
I tip my hat to those of you who have the control to walk out with only the items on the list. I can say that to anyone who can do this for large and small purchases. As much as I work at purchasing only the items on my grocery list, I never fail to walk out of the store with extra. I can also attest to buying furniture which I had no intention of getting just because the deal was too good to be true. I crunched the budgets in order to get it paid off as soon as possible, and I have been known to return an item or two which I bought impulsively.
Keep the cash advances and credit cards out of impulse shopping sprees.
If you are getting a tax return this year, use it wisely. Try to tuck some away into savings, pay down debt to make your future months less stressful and go ahead, treat yourself. Splurge within your means so the rest of the year will not be focused on paying off the debt. Avoid the cash advance temptation and keep from maxing out credit card balances. Go on an affordable vacation, buy a car which fits your regular budget and get the needed furniture. There is always next year to do more.
