Beware Refund-Anticipation Loans

There are other ways to get cash fast without the high interest rates and fees.

What do you think of refund-anticipation loans?

I don’t like them. These loans quickly provide money equal to your tax refund, but they generally charge high interest rates and fees. A study by the Consumer Federation of America and the National Consumer Law Center found that taxpayers paid about $800 million in loan fees and other fees for refund-anticipation loans in 2008.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.