How Your Tax Refund Can Help You Save $750 on Credit Card Interest Payments

Key Takeaways Using a $3,000 tax refund to pay down credit card debt at a typical 25% APR could prevent about $750 in interest over a year. Paying off debt with a 25% interest rate is like earning a guaranteed 25% return—far higher than today’s savings account rates. If you lack emergency savings, have a very low APR, or qualify for a 0% balance transfer, other uses for your refund may make more sense. It’s one of the few things many people look forward to at tax time: the possibility of a refun ...