Every year, about this time, people start talking about tax season.  Some look forward to it with a smile and hopes of a large refund check and some dread the season knowing they’ll have to pay something to the government.  For those who are expecting a refund, take time to think about how important it is to be smart with the money you get back.  Consider starting an emergency fund – research shows that we should work toward having three to six months’ worth of living expenses in savings.  Until you get to that point – be aware that any amount in emergency savings is better than none.  Tax refunds are a great time to think about paying down credit cards and eliminating debt – especially if you find yourself only paying the minimum due or paying just the interest and the principal never seeming to reduce.  If you are struggling to get rid of credit card debt, consider using the Power Pay tool.  Brought to you from Utah State Extension, this FREE tool will help organize and eliminate debt.  In order for it to work, you need to commit to three steps:

1. Quit adding to the debts you want to eliminate.
2. Commit to keeping the total amount of money going toward debt payments the same until ALL the debts are repaid.
3. When one debt is paid off, add the amount you’re used to paying on that one to another debt. This is called “snowballing” payments and makes a huge difference.

Take a minute to gather all your bills, and make sure you find the interest rates with each of them.  Visit powerpay.org and use the FREE tool to put in your information and learn which bills to attack first, and how quickly you can pay off debt.  For technical assistance, or if you have questions, please contact Rhonda Peters at rtpeters@ncat.edu.