Financial Health Expert: Plan Your Tax Refund Now – Pay Off Expensive Loans First

Spring is on its way, bringing with it a long-awaited financial boost for many Swedes: the tax refund. But before you spend it on impulse purchases or a night out, it’s worth considering how to make the most of it. Planning how to use your tax refund now can lead to greater financial stability in the long run. Felix Sjöholm, financial health expert at Anyfin, shares smart tips on how to make your refund work for you—both in the short and long term, depending on your financial situation.

1. Pay off expensive loans

Using your tax refund to pay off high-interest loans and credit cards is one of the smartest ways to improve your finances. Credit card debts, installment plans, or personal loans with high interest rates can quickly become a heavy burden—both monthly and in the long run. Even if you can’t pay off the entire debt, making an extra payment can significantly reduce interest costs and repayment time.

"Reducing debt frees up money in your daily budget, lowers your interest costs, and can even improve your credit score. You might also consider using, for example, half of your tax refund to make an extra payment on your debt and treating yourself with the rest to stay motivated," says Felix Sjöholm.

2. Build an emergency fund

What if your car breaks down, your fridge stops working, or another unexpected expense arises? If you don’t have a financial safety net, your tax refund is the perfect opportunity to start one. Having an emergency fund can be the difference between handling a situation stress-free and taking out an expensive emergency loan.

"Many Swedes either don’t have a savings buffer or have too small of one, which makes unexpected expenses a financial shock. Setting aside your tax refund in an easily accessible savings account gives you security in everyday life and reduces the risk of needing costly loans in the future," says Felix Sjöholm.

3. Invest for the future

Already have a solid financial foundation with no high-interest loans and a safety net in place? Well done! In that case, your tax refund could be an opportunity to make your money grow.

"If your finances are stable, it might be time to think long-term. Investing in funds or stocks can generate better returns over time. Of course, you should always invest according to your risk level and financial situation, but putting your money to work instead of letting it sit idle can be a smart strategy," says Felix Sjöholm.

4. Use your money wisely—but don’t forget to enjoy life

Making thoughtful financial decisions doesn’t mean you can’t treat yourself. If your finances are in balance, it may be entirely reasonable to use part of your tax refund for something you’ve been dreaming about.

"It’s all about finding balance. Taking care of your finances isn’t just about saving and paying off debt—it’s also about having a healthy relationship with money. Maybe you want to use part of your tax refund for an experience or something you truly need? Go for it!" says Felix Sjöholm.

In short

"By planning and using your tax refund wisely, you can strengthen your financial future and build a more sustainable personal economy. It’s not about cutting things out—it’s about making the right choices!" concludes Felix Sjöholm.

Key dates for the 2025 tax refund

To ensure you receive your tax refund on time, keep track of these important dates:

About Felix Sjöholm

Anyfin’s financial health expert, Felix Sjöholm, holds a degree in business administration from the School of Business, Economics, and Law at the University of Gothenburg. He has previously worked as a client manager and analyst in various financial sector companies.

About Anyfin

Anyfin is a fintech on a mission to improve millions of financial lives by making loan repayments simpler. The company was founded in 2017 by Mikael Hussain, Sven Perkmann, and Filip Polhem, all of whom have extensive experience from tech giants like Klarna, Spotify, and iZettle. Anyfin is currently operating in its home market of Sweden as well as in Germany, Finland, and Norway.