It’s an exciting time…tax returns are rolling in! Vice President of Member Services at Austin Telco Federal Credit Union, Pamela Cotton, spoke with Studio 512 about some easy and useful ways to utilize that extra cash.

What are some easy ways to utilize our tax returns?

“It’s important to shift your view of your tax return: see it as part of your income, instead of as a bonus. It’s also really smart to assess your financial situation before you spend that ‘extra’ money: do you need to pay off debt? Boost your savings? Invest in your future?”

How important is it to focus on high-interest debts if you’re using your tax return to pay things down?

“High-interest debt repayment should be your top priority! It’s so important to invest in your financial health. You’ve got two strategies to choose from: you can pay off high-interest debts first, or for an easy win, you can pay off your smallest balances first. Sometimes the smallest balances help encourage people to keep getting that debt paid off!”

Can investing in an emergency fund be a good use of a tax return?

“Absolutely! A strong emergency fund is vital for financial wellness…because the truth is, life happens. Accidents. Medical Bills. New water heater. New car battery. You want to be prepared for these things, so an emergency fund is the best way to set money aside. We suggest that you try your best to allocate money directly to a fund, instead of using money allocated for other things. One last point: don’t forget to treat yourself after all this hard work!”

To learn more about the services that Austin Telco Federal Credit Union provides, go to ATFCU.org.

This segment is paid for by Austin Telco Federal Credit Union and is intended as an advertisement. Opinions expressed by the guest(s) on this program are solely those of the guest(s) and are not endorsed by this television station.