Should I use a windfall like a tax refund or bonus to pay off debt?

For high-interest debt, yes – it's usually the best move you can make with a windfall. Paying off a card at 24% APR is a guaranteed 24% return, far better than almost any investment, and tax-free. Before you wipe out every balance, though, set aside a small emergency buffer (even $1,000) so a surprise expense doesn't send you straight back to the cards. Then apply the rest to your highest-rate debt first. If you have no high-rate debt and an adequate emergency fund, a windfall is better directed toward retirement or other goals. The key is to decide in advance, before the money lands, so it doesn't evaporate into lifestyle spending. A bonus or refund used to erase a card balance can free up hundreds in monthly cash flow. Run the impact at wealthserene.com/tools/debt-payoff.