Use your tax refund to knock down debt, lift your finances

By LAUREN SCHWAHN of NerdWallet

If you’re expecting a tax refund, you’re probably contemplating what to spend this newfound money on. There are several ways to use your windfall responsibly, but paying off debt could be the right option. Experts point out that it can help you avoid paying extra interest charges, strengthen your credit score and allow you to focus your attention on other financial goals. You don’t have to entirely sacrifice the element of fun. You could set aside a portion of your refund to treat yourself, while using the rest to accelerate your progress toward wiping out debt.