Why you should avoid instant tax refunds
Much like the question 'What would you do if you won the lottery', most Americans know 'what they will do with their tax refund' - sometimes planning out next year's return almost as soon as spending their most recent. When filing taxes and seeing a healthy return coming your way, your dreams start becoming closer to reality... once the return officially arrives - and anxiety can begin testing our patience. This can cause some to reach for an 'instant' tax refund to cut the wait. The problem is, cutting your wait ends up cutting your payoff.
When you look into the details of an 'instant' or 'early tax refund', what you will find is essentially a short-term loan with a terrible interest rate that can exceed ten times that of a reputable financial institution. The fact of the matter is, you've waited all year for this return, what is another few weeks?
If you're looking to get a fast return, simply make sure you file for an electronic return. In some cases, the processing time can take as little as eight days to receive your return. In the event you're in desparate need of money, seek a traditional financial institution who will offer an affordable rate and without hundreds of dollars in fees that take your hard earned cash.
Keep an eye out on our blog as we share tax time tips all throughout the month of Jan and February!
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