What Will You Do With Your Refund?

I was reading an article on Essence.com and a reader asked the following:

QUESTION: What is the best way to spend your income tax refund? Pay down debt, save or both?-Denelle Hammond, Washington, D.C.

ANSWER FROM TANESHA SYKES, ESSENCE BUSINESS EDITOR: I'd say both, but before you do anything, have a plan for the money. As a part of your money plan, set up an emergency fund. If you can afford to, set aside half--that's right--50 percent of your income tax refund toward this goal. Why? Because the economy is shaky, layoffs are increasing and companies are closing at a rapid pace. We are in serious trouble economically, and it's important, now more than ever to have the financial stability to support ourselves in case of an emergency. Next, take 25 percent and pay down a portion of a major, high-interest debt, such as a credit card. If you owe $1,000 on your favorite department store card, pay $250 toward it. Last, spend the remainder on yourself! Otherwise, you'll start feeling deprived and it's a good way to make our economy thrive. Use this formula for whenever you get an unexpected windfall and let me know how it works.

I like her answer but you really have to do what is best for you. Personally I think I'm going to put it all towards a credit card that had a really good balance transfer offer (3.99% for the life of the balance). So I'll make sure the card has no balance and then transfer my other cards to it. What do you have planned for your refund?