Friday, January 25, 2008
Question of the Week
Many fear that the economy is heading for a recession. Therefore, our government has created a plan that would award tax rebates, $600 for singles making less than 75,000 annually and $1200 for couples making less than $150,000 annually. (The rebate checks would be sent in the Spring.) Our question: Would you spend your tax rebate or use it to pay off debt? (Many of our readers are still considered dependents and would not recieve a rebate. Thus, our question may be hypothetical for them. That's ok, everyone can answer it!)
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11 comments:
I'd put most of it towards my credit card bill, and perhaps buy a new pair of shoes. :-)
It has been said that in order to predict the future, we should look to the past. If this is true, all of my previous tax refunds have been put towards both, paying off debt and getting a little treat. The way I see it, this is a good trade off since the money should have been in the bank in the first place, but is just now being reimbursed. Had the money been in the bank one year prior, it would have met the same fate.
Let me also state, while we are on the subject of taxes, that many in the Republican party, especially those in Texas, have taken the position to abolish the IRS. Wouldn't it be nice if this money were never taken in the first place and the government was not allowed to intrude so drastically into the private lives of its citizens?
This is a very easy question for me to answer because I'm in the "real world" now, and growing up has taught me much about finances. I have a real job, and my husband and I have a lot of student loan debt to pay off. We recently took a financial peace course which really helped us get our priorities straight. And paying off our debts is definitely one of them. So yes, I would definitely use the money to pay off our student loans, especially since you pay less interest the faster you pay it.
I would not spend the money I would either put it in savings or I would pay off any debts i have incurred.
I would take my $600 and do one of two things, save it to help pay for moving expenses or put it towards my credit card. I might treat myself to lunch or a Diet Dr. Pepper but that would be about as much of that money as I would be willing to spend.
i would save it, unless my car is in the shop.
for the record, i think the whole "giving away 'free' money" thing as as way to stimulate the econmony is ridiculous. while some of us are trying really hard to buy american-made, fairly traded shit, most of the money is going to go towards bolstering other nations' economies anyway. this doesn't mean i won't accept the money; it just means i think it's a bad idea.
This is a case of six of one and half a dozen of another... if you use this money (which was already yours, unless of course you make too little to even pay taxes, in which case the $600/$1200 is also mine, you are welcome...) to pay off debt, it will free up your income to be able to spend more money on luxury items, whatever that is defined in your bracket/lifestyle.
Either way, the idea that it gives us more money to spend is great in theory, but may really not have too much of a long term effect. $600, or the equivalent of $50 per person a month is little more than pizza or starbucks money.
I'll more than likely sock it away in our rainy day fund. May start raining sooner rather than later...
I'll frame it and spend countless hours staring at it in shock that the government chose to let me keep some of my money instead of letting someone else spend it.
What a peaceful blog! I am mildly surprised that no one has started the argument: the government takes my hard earned money and gives it to slackers VS. stop being greedy and accept the way the world works.
I would put my towards my deb(damn dinner I am still paying for two years later).
-debt.
Not deb.
I would invest at least half and talk the other half to pay off CC debt that is not accuring interest.
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