NORFOLK, Va. — Tax Day is April 15, which means taxpayers have less than a week to file their taxes or ask for an extension.
As of the latest report from the IRS, the average tax refund for this filing season is $3,500. If you receive a refund, experts suggest striking a balance by putting some of the money toward savings or paying down bills.
It is best to prioritize high-interest debt, such as a student loan or credit card debt. The more time you pay interest, the more time it takes to pay down the principle. Extra payments can make a big difference.
“When you're looking at this huge pile of debt, it is really hard to think like, ‘how am I going to get chip away at this?’” said smart shopping expert Trae Bodge.
“One of my favorite tactics actually, which I've used for my mortgages for many years, is to pay twice a month. You could split your regular monthly payment into two, so it's not even paying extra and what that does is it gives you a 15-day jump on that interest that you're accruing. On a bigger debt like a mortgage, that can be significant over the months and years.”
Bodge also suggested investing in education with any leftover funds.
“This is a good time to think about investing in your kids, in yourself, in education in general. If you have a 529 account for your kids, it's a great opportunity to put a little bit more in there. If you don't have a 529, this is your time. Set up that 529 because the more years you spend saving for your kids' education, the much better off you're going to be when they're starting to look at colleges and look at those huge tuitions. Some of these schools are $850,000 to $90,000 per year per kid. It is big and so the longer you save for that 529 the better off you're going to be,” Bodge said.
You also do not need to do anything immediately with your refund. Bodge mentioned there are a lot of deals coming up over the summer months. If you need something for your home, Home Depot and Lowe's are having spring 2026 sales. Big Memorial Day sales are also approaching for items like mattresses and large home appliances.
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