With the Tax Rebate checks just around the corner, I found myself wondering what people are planning to do with this unexpected income. Will you send it to credit card debt? Put it in savings? Spoil yourself with a well deserved weekend get-a-way? Some are finding this to be a very hard decision!

If you have credit card debt, paying this off should be your number one priority! The extremely low interest rates and 0% balance transfers we have been enjoying for the past few years are soon to be a thing of the past! Interest rates are on the rise and don’t appear to be going down anytime soon. What’s even worse is that this is even affecting people with good credit scores!

If you don’t have any credit card debt, your best option may be to put it in savings or invest it. The following is an example of how much a married couple can make by putting their $1,200 check into an ING DIRECT Orange Savings Account and making a small monthly deposit…

• Starting with $1,200 and depositing $40 monthly over 10 years at a rate of 3% compounded monthly, you will save $7,191 (to change the interest rate or amount saved monthly, use this savings calculator at MSN Money).

So back to my original purpose for writing this article… what do you plan to do with your tax rebate check?

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