How I spent my tax rebate: Paid down credit card debt
Lately the water-cooler discussion at work has been surrounding who the ultimate beneficiary of my rebate check will be. Knowing I am obsessed with technology, most of my co-workers assumed that I would take my $1,200 and head straight to Best Buy in search of a bigger TV. Others assumed I might pick up a batch of video games or an iPhone. In reality I used my rebate check for a much simpler and exciting purpose, and no, it wasn't blown on quarter wings at Buffalo Wild Wings.
My wife and I spent our stimulus package on debt. Yep; unsexy, non-shiny, can't-unwrap-it-debt. Of course we got there in part from spending on things like gifts, the occasional vacation and things you can unwrap as well as a super-fun MRI last year so getting there was fun anyway. From our actual tax return and our stimulus check we have knocked a nice chunk out of our credit card debt, even paying off one card in an attempt to snowball our way to wealth. The decision to pay down a credit card rather than pick up scrapbooking and electronic items was easier than at least I thought it would be.
Just as my fellow blogger Lita Epstein found that making an extra payment to her mortgage translated into savings above and beyond the initial payment, I know that knocking a grand off of my credit card debt no matter my current interest rate will save me even more in the months to come. This payment is part of our effort to be out of credit card debt by the end of the year. After that we can start looking at our student loans!
I know this isn't the most exciting use for the stimulus package, but It was the best use for us and made the most financial sense. Have you received your stimulus check yet? What are you using it for; Fun, debt reduction, starting an emergency fund, hookers?