Spend your tax refund: Credit card debt
You probably can imagine lots of fun ways to spend your refund, but paying down your credit card balance is a smart move. If you have multiple cards, first tackle the debt on the card with the highest rate, or pay off one card completely if you can, and bank the satisfaction.
Crunch the numbers: If you make 4 percent minimum payments on a $3,000 balance at 18 percent interest, it takes nine-plus years to pay it off—and costs $1,600 in interest. By making 10 percent payments, you erase the debt in 11 months while paying $275 in interest.