Make Your Tax Refund Check Work for You
Tax time is exciting for those receiving a tax refund. If you are considering a short sale in NYC, instead of taking a family vacation or using this as a down payment for a new vehicle, it’s time to make your tax refund check work for you.
Pay Off Your Credit Cards
You can use your tax refund check to pay down or off credit card bills. Having a low debt-to-income ratio is important because it tells creditors you can manage your finances and makes you a great candidate to extend credit to. Also, if you run into any sticky situations down the line, you have emergency funding available on your credit cards.
Put a Down Payment for an Apartment
Since you are going through a short sale, you will need to rent for two years or longer. If your short sale has affected your credit already, use your tax refund check as a good down payment. A larger down payment combined with a year or longer lease may be just the motivation landlords need to rent you a wonderful place.
Start an Emergency Fund
Finally, you may have felt as though you were in a tight bind and that was your incentive to sell your home in a short sale.
It’s time to start an emergency fund just in case you run into further problems down the line. An emergency fund is different than your retirement fund. It provides instant access in true emergencies.