NEWS RELEASE

Over the next few months, millions of people will be receiving their income tax withholding refunds. This will put them at a financial crossroads, according to money management expert K.C. Knouse, author of True Prosperity: Your Guide to a Cash-Based Lifestyle (Double-Dome Publications, (800) 431-1579).

"Average tax refunds are approaching the two thousand dollar mark. That kind of money gives people an opportunity to change their financial lives--if they take advantage of it," Knouse says. "Instead of spending the refund, or worse, applying it as a down payment to leverage even more debt, people can use that tax refund money as a first step to becoming debt-free."

Knouse offers these suggestions for using your tax refund to break the cycle of debt:

• Put it into savings and use it to pay cash for unexpected expenses instead of borrowing to pay for them.

• Apply part of it to the outstanding principal of an existing installment loan and put the rest into savings. You will save the interest charges on the amount of principal you pre-pay, and you will reduce the amount of time it will take to pay off the debt.

• Use part of it to pay off a high interest credit card balance and save the rest. Then add the monthly payment you were making on that credit card to savings.

• Use it to open a minimum balance, no-fee checking account. Your money will earn interest and you will save on bank fees.

To achieve the most effective use of your tax withholding refund, Knouse says to balance debt reduction with saving, because money in savings reduces the need for new debt.

True Prosperity: Your Guide to a Cash-Based Lifestyle (224 pgs., $13.95) is available at leading bookstores or directly from the publisher, Double-Dome Publications, 10761-B Pebble Hills, #273, El Paso, TX 79935. Orders may be placed by dialing toll-free 1-800-431-1579 or at www.liveoncash.com.

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