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What's The Deal: Spending your tax refund

Experts say "impulse buys" may not be the best way to use the infusion of cash many receive this time of year.

INDIANAPOLIS — It's tax refund season and many of you might be coming into a little extra money.

First, let's remind ourselves: A tax refund is return of an overpayment to the government, not a bonus.

With that in mind, let's go over what not to spend money on.

That includes anything you consider to be an impulse buy, meaning you didn't want it until money hit your account. 

A reason not to impulse buy? The time between Presidents Day and Memorial Day is quiet when it comes to sales, according to Retail Me Not's Kristin McGrath. 

"Put that tax return money in savings and wait for those strategic times to buy those big-ticket purchases," McGrath said. "For example, if you're looking to buy a new mattress or furniture, wait for Memorial Day.

But let's say you want to snoop around the stores anyway. Here's how to check an item's price history using the browser extension, Honey. Once it's downloaded, go to the store's website. 

Let's say you want a chest freezer for $279. When the Honey icon pops up on the side, click "price history," wait for the chart and change "30-day history" to "120 days." In the example we checked, the freezer previously dropped to $219 dollars, so the current $279 offer is not the best price. 

This is also a great time to pay off credit card debt, since the average interest rate is more than 24% according to Forbes Advisor.

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