Dear Chuck,

My husband and I have lived frugally since getting married ten years ago. We’ve been paying off student loans, cars, and credit card debt. I’d like to use our tax refund for a vacation, but my husband insists that we pay off more debt. 

Divided Over Tax Refund 

Dear Divided Over Tax Refund,

Congratulations on the perseverance demonstrated by paying down your debt. I agree it can get tiring, old, and even depressing. That is why it is essential that you focus on the goal and give thanks for a husband who cares enough to protect your financial situation. At the same time, there needs to be room for some celebration that meets both of your objectives. 

Affordable Celebrations 

Find ways to celebrate how far you’ve come without blowing through the refund. Maybe your dream vacation can be postponed until more debt is reduced. In the meantime, consider alternative ways that will not cost money but will bring you joy together. Time spent in nature hiking, biking, and picnicking can be rejuvenating physically and emotionally. I have friends who love to hike and bike in the Smoky Mountains. Others take hammocks, books, and a picnic to relax. Perhaps you prefer pickleball, tennis, public gardens, museums, camping, etc. 

Avoid Going Crazy

Unfortunately, many people fail to realize the importance of stewarding their tax refund. An article at Credit Karma says Americans blow their refunds like it’s free money. Results of a study conducted on their behalf revealed that by this time last year, “more than a quarter reported they already used or plan to use their refund to splurge on things they otherwise wouldn’t buy such as clothing and accessories (45%), electronics (40%) and shoes (37%). This trend was more pronounced among younger generations with 39% of Gen Z and 36% of millennials admitting plans to splurge.”

Here are just a few ways people (in debt) foolishly spend their refunds:

• Purchasing a pet they cannot afford
• Getting tattoos or lip fillers  
• Financing new cars
• Buying expensive phones or computers
• Having fancy dinners and vacations they cannot afford
• Gambling or flying to Vegas
• Buying expensive sporting goods, clothes, shoes, and accessories
• Making loans to friends or family
• Investing in things they do not understand

Good Stewardship of Your Refund

These are my three suggestions regarding tax refunds for people in debt:

• Build your emergency savings to prevent the need to borrow. 
• Pay down your debt to reduce interest expense. Credit card debt is the most expensive on your list. Consider getting all balances paid off. 
• Check your W-4 Form. You may need to increase your allowances to avoid refunds in the future. That is money you can put to better use. Check it annually, and revise it at any time, knowing that marriage and babies have a direct impact.

Stay United

Whether debt is an issue or not, this article explains how to put a refund to good use. More important than what you do with the money is how you work to stay united as a couple. A tax refund is money the government owes you. It is not a gift or financial windfall. It is money 

you worked for, so wisely put it to work for you. Your husband may already have a plan to maximize your return. Be honest with each other, consider all your options, pray, and ask the Lord to bring you to an agreement. I hope the two of you will ask the Lord to bless your efforts and unite your hearts with common goals. Hopefully, these ideas are a starting point for your unified approach. 

Commit your work to the Lord, and your plans will be established.

Proverbs 16:3 ESV

If you need extra help in making a plan to pay off credit card debt, consider reaching out to Christian Credit Counselors, a trusted partner of Crown. They are a valuable resource to help consolidate debt and get on the road to financial freedom.

This article was originally published on The Christian Post on March 28, 2025.