What Will You Do with Your Tax Rebate?

The Federal Tax Rebates are getting set to start rolling out to taxpayers on May 9 and will continue for months until all have been paid out. So, what should we do with this windfall?

The intention of course, is to stimulate the economy by giving people "mad money" to spend and a great number of these rebates will probably be spent that way.

Some families will need them just to cover bills and make ends meet. But if you aren't in the position where you have to use the money to cover overdue bills and if you can restrain yourself long enough to stay away from the electronics store and that new TV, here's a better idea.

How about paying down some credit card debt? Doing so will benefit you financially over the long run by lowering your interest payments and giving you more disposable income. Pay an extra mortgage payment and bring your principal down.

You could invest in your IRA or put it into mutual funds. There are dozens of ways to utilize the money to better your financial picture for now and for the future.

So put down the flyer from the computer store and stop dreaming of that new flat-screen TV. Make choices that invest in your financial health and welfare.