Make these 2 moves with your tax refund, says finance expert—one helped her pay off $200,000 in debt

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Erika Kullberg recommends using your refund to bolster your emergency savings and to pay down debt. She used the ‘avalanche method’ to pay off…

. If you directed your employer to withhold too much from your paycheck each month, the IRS merely returns the amount you overpaid.

Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weeklyIn fact, the two most common responses are the exact order of operations recommended by Erika Kullberg, an attorney, personal finance expert and founder of"I'd start with filling up your emergency fund with your tax refund, if that's not yet filled," she tells CNBC Make It.

Under the so-called snowball method, you make minimum payments on all your loans, then direct any extra cash to the debt with the smallest dollar amount. The thinking here is that the success of paying off bigger and bigger amounts will help build psychological momentum.

 

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