Stock volatility caused by President Donald Trump's tariff plans has sparked fear of a recession.
Financial planners share ways to make a tax refund count.
Keeping strong savings, paying off high-APR debts, and investing while stocks are down can all help.
President Donald Trump's frequently-changing tariff plans have introduced stock market volatility. This volatility, along with increased prices due to tariffs, have spurred fears that a recession could be around the corner.
We aren't in a recession yet. But if you're planning on getting a sizable tax refund and you want to start preparing for one, here are three things you can do to make your refund count.
1. Pay off debts with high annual percentage rates
The Federal Reserve recently chose to keep interest rates steady at the March Fed meeting. Since interest rates are high right now, that means that annual percentage rates for consumer loans are also high.
This is especially true of credit cards, which offer a variable interest rate.
"What you once thought your interest rate was for your credit card has probably drastically increased without you even knowing, because all credit cards are variable interest rates," says Rianka R. Dorsainvil, CFP® professional, founder, and senior wealth advisor at YGC Wealth.
If you have credit card debt you haven't paid yet, using the refund from your tax return to pay it off can be a great way to avoid racking up debt. But other loans with lower rates or fixed payment plans aren't as important to pay off right now.
