Avoid Tax Refund Anticipation Loans

Getting a refund? Lucky you. Make sure you don't ruin your luck by getting an expensive loan.

Tax preparation shops often offer tax refund anticipation loans. These loans give you your refund money instantly -- so you don't have to wait for Uncle Sam to process your tax return. Unfortunately, they can be costly. Financial Planning expert Jeremy Vohwinkle notes:

"In some cases, if you calculate the fees on an anticipation loan, it may be the equivalent of over 200% APR".

Ouch. There are alternatives. If you want to speed the process along, consider using direct deposit for your tax refund. If you want more information, see Mr Vohnwinkle's page on tax refund anticipation loans for some handy ideas.