After I divorced from my wife, I needed to start building my finances back up again. I have started this website to show people how you can save money and invest it sensibly after your divorce. You will not be able to get rich overnight, but by taking a long term view you should be able to get your finances in order and buy a new house or other things like that. I want my kids to know that I am doing OK financially and I want to make sure that I can keep giving them the lifestyle that they deserve when they are with me. I am sure you want the same things.
Just received a sizeable tax refund from the tax department after filing your returns through tax accountants? That's fantastic news! But are you directing this windfall toward the right avenues? Put off that shoe shopping spree or that ski holiday if you're in major debt. Improve your credit score and release yourself from these debt burdens with your tax refund for a better future.
Pay Off Your University Education Loan
With the government cutting down on funding to major Australian universities, student fees are expected to rise by nearly 40 percent. This can be incredibly difficult for many people to pay back for a long time, especially when you start out with lower salaries to get into the job market. But any little windfall from your tax refund is best utilised by making voluntary payments toward your university education loan. This reduces your debt burden substantially and ensures a higher credit score when you need another loan in the future.
End Your Debt To The Credit Card Company
If you're going to apply for a refund when filing your returns through tax accountants, you may as well make it count. You can reduce your credit card debt substantially by putting some or all of your refund into repayments. On an average, many individuals get $2500 back in tax refunds. Over 7 million Australians have an average debt of over $4000 per person, so it is a prudent choice to pay back some of this debt with the money you receive in tax refunds. If you don't know how much you're going to get back, your tax accountants can help you establish the amount, so that you can plan your credit card repayment debt more aptly.
Pay Off A Portion Of Your House Loan
With the average cost of homes in Australia rising to nearly $658,608, house loans are going to be one of the biggest debts in your lifetime. The weighted debt over the years can put you over the edge, especially if you have other debts along with it. Since you're likely to get back quite a decent amount from the Australian Taxation Office, you may want to put a chunk of this money toward paying off your house loan as much as possible. While you may only make a small dent in your house loan debt, it will certainly make it easier for you in the future.
Don't throw away your tax refunds on frivolous expenses when you're ridden with different types of debt. Your tax accountants can help you put your money towards better use for improving your credit score and releasing your debt burden.Share