GreenPath Counselors Advise Diligence in Tax Rebate Spending

FARMINGTON HILLS, Mich., April 25 /PRNewswire-USNewswire/ -- As Money Smart week in Michigan comes to a close, and National Financial Literacy month begins to wind down, counselors at GreenPath Debt Solutions advise consumers to exercise good money management practices when they receive their imminent U.S. Economic Stimulus tax rebate checks beginning next week.

"Everybody's thrilled about receiving unexpected cash right now, but unnecessary spending could lead to a lot of personal finance problems," said Mark Ernst, a GreenPath credit counselor in Farmington Hills, Mich. "Given the state of many families' finances lately, I'd like to see people think about their rebate as a way to overcome financial challenges first; they can stimulate the economy later."

GreenPath counselors suggest consumers prioritize their rebate spending as follows:

1. Pay off any late utility or housing expenses.
2. Pay down credit card debt. Use your refund to pay the highest interest
rate obligation. If you can wipe it out completely, even better.
3. Set up an emergency fund or add to your current one. Your goal is to
save enough to cover three to six months worth of critical expenses.
4. Fix up your home. Increasing the value or safety of your home adds to
your quality of life.
5. Service your car. Make certain you have reliable transportation; don't
put off that tune-up or oil change.
6. Expand your horizons: Take a course, start an education fund or train
for something that will help you get ahead at work or in a new career.

GreenPath has advice for those whose current financial situations do not feature debt or delinquencies, as well

"While, the stimulus package will certainly have a positive impact on some things, like retail sales, it may not actually help bring us out of our current economic environment," said Ernst. "Even if everything is fine in your financial life right now, we urge you to consider the fact that you may have to worry about job loss or budget shortfalls in the future; put that rebate away into an emergency fund the moment it arrives."

GreenPath Debt Solutions, a nationwide nonprofit consumer credit counseling service, has been helping people resolve financial problems and achieve goals through financial counseling, debt management and education since 1961. Headquartered in Farmington Hills, Mich., GreenPath operates 36 full-time branch offices in Michigan, New York, Wisconsin, Illinois, Indiana and Arizona and delivers licensed services throughout most of the United States over the Internet and telephone. More company information is available at www.greenpath.com.

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Source: GreenPath Debt Solutions

CONTACT: Eve Pidgeon of GreenPath Debt Solutions, +1-248-939-7045

Web Site: http://www.greenpath.com/

2008-04-25 17:32:37 0345690 PRNEWSWIRE