Michelle asks Dave if her $5000 tax return should go to her debt snowball or school tuition.Show Transcript
ANSWER: You should pay off your consumer debt first. Then as you become debt free, you’ll be able to put more cash toward your tuition.
You also need to adjust your tax withholdings with your human resource office at work. You should not be getting back that much money. When you do that, it means that the government is taking too much out of your paycheck and you’re loaning it to them – interest free – for a year. Remember: you’re not required to pay too much to the government. A big tax return is not a good thing!