First of all, a refund isn't "found money", it is an interest free loan you've given to the government for the past year.
Step 1- adjust your withholdings so next year you get as little as possible back in refund. That will mean you get more every month in your paychecks.
Step 2- set aside $1,000 into a savings account for emergencies. This will help you not rely on credit cards or create debt when an emergency situation arises.
Step 3- pay off your debts! If all you have is a car payment, put everything remaining from your refund onto your car loan. If you have credit cards as well, pay those off. Whatever is the smallest balance is what you should pay off first. So when that is paid off you can throw whatever the monthly payment was for that debt plus any extra you have onto the next smallest balance.
Best of luck.
