While it is tempting to pay your last minute bills with that tax return, here are some items to keep in mind before doing so.
- Refund Anticipation Loans (RALs) give you cash immediately, however, you have to pay that money come tax season, plus interest.
- These RALs are also packed with fees. These add-on fees can completely take over your tax refund money.
- Even if you take out an RAL, you have to pay it all back in the end. With this comes a certain amount of uncertainty where you must hope that you end up with enough tax money to pay back your loan.
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