Tax Advisor Terry Selb Outlines Benefits Of Paying Down Debt With Tax Refund
Tax resolution advisor Terry Selb details how to increase financial health from paying down debt with a tax refund
As a leading tax resolution expert, Terry Selb counsels his clients on all matters related to taxes, including tax refunds. A tax refund is a cash that’s available to spend, save, or invest. Many people choose to increase their overall financial stability by paying down debt with the cash from their tax refund.
When counseling his client in tax and financial matters, Terry Selb considers all of the client’s assets and liabilities. There is a balance of debt and savings, and expenses and income for every client. A tax refund is often a large amount of money that can be saved, invested, or spent in many ways.
Terry Selb has seen many clients use their tax refunds to pay down a portion (or all) of their debt. The client’s overall financial health is improved by using a tax refund to pay off some of the liabilities. Each person’s situation is unique, but decreasing debt is beneficial overall.
Debt is expensive when you consider the interest rates that continually increase the balance, especially when paid off over a long period. Terry Selb advises people that a tax refund is a large amount of cash that can decrease an account balance and save a significant amount of interest.
Terry Selb explains that investing your tax refund is not always the best use of your tax refund. Most of the time, the potential gains from investing money received in a tax refund are far less than the cost of the interest accrued on a debt balance. There are some exceptions, but that entirely depends on the interest rates for the investments and debit accounts.
Terry Selb advises people to think about how to use your tax refund to increase your overall financial health and not just treat it as extra money to spend recklessly. There are many considerations depending on an individual’s circumstances. For example, if there are larger expenses in the near future, it may be wise to set aside some money from a tax refund instead of paying down debt. Overall, Terry Selb recommends his clients consider using their tax refunds to pay down some debt.
Terry Selb works as a senior partner in one of the leading tax resolution companies in the United States. He has 20 years of experience in consulting businesses and individuals in all tax-related subjects. He has delivered solid tax solutions to over 5,000 clients and is active in the areas of tax blogging, business community development, political influencing, and lobbying for tax-related efforts. Terry Self earned a Bachelor’s in Political Science and government from the University of Minnesota and graduated from William Mitchel College of Law.