Tax Refund Tips

PORTSMOUTH, Va. - In this rough economy, your tax dollars are bailing out auto companies and banks. But for some, cash is coming back from the IRS.

With your own personal bailout money, CNBC financial expert Carmen Wong Ulrich thinks the first thing people should do is pay off credit card debt.

"If you carry a balance, and your interest rate is over 12% -- we have people calling in with interest rates of 29% -- that's where your money needs to go because it's too expensive to carry," she said.

One place Ulrich said to avoid spending your refund is your home mortgage. With interest rates already low and the market still declining, committing new money toward your mortgage may not be the best idea.

Instead think about investing.

"If you have the credit card debt paid off, if you have the emergency fund, look into the market because it is true that everything is on sale."

Also, don't be afraid to spend a little bit on yourself and small things that just feel good. "Take 10% and get yourself some chocolates, and little luxuries, especially because we're so stressed," Ulrich added.