Fairfax, VA - February 24, 2009 — Millions of American taxpayers are filing tax returns and anxiously awaiting tax refunds. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) encourages consumers to make the most of their tax refunds by following some simple dos and don'ts.

"Many consumers view their tax refunds as 'found money' and spend it without first reviewing how the money could help their financial situations," said Dave Jones, president, AICCCA. "Those who give some thought as to how best to use their tax refunds could make substantial improvements in their personal finances."

Make the most of your tax refund with the AICCCA Three Dos and Three Dont's for tax refunds:

Three Dos

1. Do pay down credit card debt. Many creditors are decreasing credit limits, which can lower your credit score if you are carrying a balance on your credit card. In addition, substantial interest charges can be saved by paying down your balances.
2. Do save for emergencies. The best financial tool for staying out of unwanted debt is a savings cushion of three to six months of living expenses. Use your refund to start an account or add to your existing account.
3. Do invest in your future. Add to your 401(k) or other retirement account. Also, consider opening or adding to a child's college education account.

1. Don't apply for a Refund Anticipation Loan. The fees and interest associated with these loans are very high. Instead, file an electronic tax return and you can expect to receive ALL your money with direct deposit in 10 days.
2. Don't hurry through preparation of your tax return. Make sure you properly fill out your tax return to avoid mistakes, a possible audit and to assure you don't leave any money on the table.
3. Don't spend without a plan. If you decide that you want to spend your tax refund, give some thought to what you will buy. Instead of spending freely until the money runs out, consider putting the money towards upgrading your summer vacation or home improvements.