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Show What to do with tax refund If you expect a tax refund this year, you are not alone. Last year, 74 million Ameri- cans received refunds. According to the Internal Revenue Service, refund amounts average $2,091 this year, compared to last years $1,743. ing your income does not ex- ceed the annual income thresholds. Put your money into a 529 College .Savings Plan. This is a good place to park extra dollars for parents who are putting money away for their childs college tuition. This tool does not have income requirements, and you can stash up to $10,000 tax free in any given There are many ways to spend your tax refund. Consider these suggestions to make the most of it. Invest in an Individual Retirement Account (IRA). year. Consider adjusting your Options include a Roth IRA or A IRA. tradia traditional withholding. If you are getting tional IRA allows you to re- a $2,000 refund, you are givtax break on ing the government an interestceive an ride on your money. the money you put in. With a -free Roth IRA, you must pay taxes By adjusting your tax withon the money you contribute, holding, you will receive more state-sponsor- up-fro- ed nt but you can withdraw principal and interest tax free. This year you can put up to $3,000 in a Roth. If you are over 50, you can invest $3,500, assum money in your paycheck. You can use this money to invest as you wish, or to reduce debt. Pay off credit card debt. If you dont have a credit card balance, youre in great shape. If you do, consider investing your refund in something that will provide a guaranteed return of 14 percent or more. By applying your refund to your credit card balance, you can save thousands of dollars in interest. There are many consumers who dont believe their refund will make much of a dent in their overall debt. But they are wrong. Consider this: Many economists point to signs that the economy is rebounding and with it, the Fed may raise interest rates as early as this summer. This is good news for savers, but it will raise the cost of debt. About half of all credit cards have variable interest rates, which means they move up or down depending on current interest rates. Many creditors use a formula tied to the prime rate, which is the rate banks charge their best customers. The prime usually moves up THE SAN JUAN RECORD Wednesday. April 24, 2002 - Rage 13 when the Fed pushes rates up. Most creditors have set limits on how low interest rates can go, so card holders stopped benefiting from falling rates months ago. If the prime moves higher, you can expect the fees on your variable rate credit cards to go up, too. Late fees are climbing for card holders with large balances. Several big issuers have increased late fees for card holders with balances of $1,000 or more. While the average late fee is $28.58, several issuers are charging up to $35 for customers whose balance exceeds $1,000. The cost of tarnished credit is increasing. Most consumers know that a blemished credit report can make it difficult to get a credit card or buy a house. But auto insurers are increasingly using consumers' credit scores to calculate the cost of premiums for their policies. If you fall behind on your credit card payments, you could end up paying more in auto insurance, in spite of the fact that you may have an impeccable driving record. I lome insurers are also using credit scores when pricing insurance. Even if your refund isnt enough to eliminate your credit card debt, it can provide a good starting point. When you see your balance drop significantly, that might motivate you to pay the card off more quickly. If your balance is spread among several credit cards, use your refund to pay one or more of them off. This will reduce the number of cards you have to juggle, making your debt more manageable. Once youve paid one card off, close the account. To see other Ask A Specialist" columns, visit: http extension.usu.edupublica newsaska NewJDigitallDiagnosijT Dr. G.O. Miller, DDS Dr. Brian J. Goodwine, DDS . FAMILY DENTISTRY AND ORTHODONTICS 435-587-25- 28 Empire Electrics Annual Stockholders Meeting May 4, 20Q2 Dolores High School Gymnasium Dolores, CO Registration open at 9;00am Business meeting at 10;00am Lunch served at 1 1:30am Reports of Officers, Directors, Committees Election of Directors Drawing for a vast array of prizes following the business meeting Mail your ballot in by April 29 if you cant attend Empire Electric Association, Inc. Utah for over 60 years Serving Southwestern Colorado and Southeastern A Touchstone Energy Cooperate X&L 217 S 100 W Monticello 7 am - 7 pm Mon Fri SAN JUAN COUNTY CLOSED FIRE SEASON PROCLAMATION WHEREAS, WHEREAS, the forests and watersheds of San Juan County occupy a vital place in the Countys economy, and, these lands are extremely vulnerable to damage by wild fire, and, WHEREAS,. . dimatic and vegetative conditions of moderate fire severity are now approaching and will progressively worsen, and currently a drought emergency exists: THEREFORE, the County Fire Marshall and the County Commission do hereby order a CLOSED FIRE SEASON to take effect beginning MAY 1 , 2002 through OCTOBER 31, 2002. The Closed Fire Season 6hall be subject to ail restrictions and provisions attached thereto by law. That during the dosed season it shall be a misdemeanor to set on fire, or cause to be set on fire any flammable material on any forest, brush, range, grain, stubble, or hay land without first securing a written permit from the Utah State District Fire Warden, County Fire Marshal or Local County Fire Chief. The focal municipalities of Monticello and Blanding are not induded by this prodamation. Residents within these communities desiring to burn should contact the City Fire Chief t the City Office. sTy Lewis, Chairman San Juan County Commission s Rick M. Bailey, Fire Marshatt San Juan County Fire Control |