Don't be fooled by instant loan refund hype
Thursday, January 25, 2007
MANHATTAN, Kan. - Instant tax-refund loan businesses are becoming increasingly popular. People who want their refund immediately sometimes go to such businesses to get it the quickest way they possibly can.
These so-called instant tax refunds are highly promoted as "quick loans" to get access to taxpayers´ money, said Carol Young, family financial management specialist with Kansas State University Research and Extension. Like all loans, however, they come with a cost.
Getting past the "quick loan" hurdle isn´t the only thing taxpayers should be cautious about during tax season.
"With money in your pocket, you´re tempted to buy all kinds of `fun´ things - maybe things that you don´t really need, but would like to have," Young said. "You need to keep repeating to yourself, `This is not extra money. I have not just won a special prize or the lottery. This is my money that I´ve spent all year earning.´"
Before receiving tax refunds, taxpayers should think about what was on their "need list" prior to tax season: Paying off a credit card bill? Buying new tires or repairing the car? Upgrading their home computer? Saving for a vacation?
All of those needs will still be there, waiting for attention, Young said.
For more information:
K-State Research and Extension - News
Mary Lou Peter-Blecha, coordinator