Tax Refund Loans: Don't Mortgage Your Future

Editor's note: As a special feature for March, TheStreet.com offers an ongoing series on everything you need to know about taxes. Today is part nine.

For many Americans, tax refund day is a holiday on par with their birthday or Christmas. Some people are so anxious to receive the check from Uncle Sam that they spend it before it even arrives. However, taking on debt in anticipation of a tax return is not a decision to be made lightly.

Money Management International, a nonprofit credit counseling agency, recently published its 2007 Tax Survey results and uncovered some encouraging trends.

According to the survey, 32% of Americans plan to put their tax refund in savings. Another 46% will use the money to take care of obligations such as car repairs or outstanding debt. Others will use their returns in less noble ways. But Tanisha Warner, spokesperson for MMI, says "that's not necessarily a bad thing as long as you have a plan."

More Money Than Brains

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