More than 130 million of us should have received a tax rebate by early July.

To qualify, all you have to do is file a 2007 income tax return.

Most individuals will get $600 checks. Married couples $1,200. If you have kids, you'll get an extra $300 per child.

Of course, the government would like you to boost the economy by blowing your check at the nearest mall. But we've come up with eight smarter ways to spend your rebate -- and improve your life.

Smart move 1. Reduce high-interest credit card debt.

Ok, this is not what the government had in mind. But big credit card bills, and the extraordinary interest on that debt, is the most stressful financial problem many consumers face.

Using a rebate check to pay down the balance on credit cards charging 14% to 30% a year can save individuals $90 to $200 just in interest over the next 12 months. Couples could save $180 to $400.

You'll also make at least a small dent in your total balance. Our calculators can help you create a repayment plan for one credit card or a bunch of credit cards.

Smart move 2. Establish an emergency fund.

A Consumer Federation of America survey taken last year found that only 40% of adults have any money set aside to cope with losing their job or a major accident. That number drops to 19% for young adults 18 to 24.

You ultimate goal would be a savings account or money market fund with enough money to cover at least three months' worth of expenses -- six would be even better.

Your rebate would just be a start, but you've got to start somewhere. And life is a lot less stressful if you've got at least a little financial cushion to fall back on.

Smart move 3. Reduce your energy bills.

Unfortunately, many of the federal tax credits for making homes more energy efficient expired at the end of last year. But with fuel oil, gas and electric rates going up across the country, using your refund to save on heating and cooling bills can still save money month after month.

An energy audit is a good place to start. For an average of $300 to $700, a certified energy rating professional can give your home a thorough inspection, recommend energy-saving changes (some of which are probably easy enough to implement yourself), and estimate both the costs and annual savings for each of these changes so you can focus on those with the biggest potential payoff.

You can find a certified energy rater through the Residential Energy Services Network or the government's Energy Star program.

Smart move 4. Save water.

This is an especially important option if you live in a state still feeling the effects of last year's drought.

Exchanging older toilets for new high-efficiency ones could save a family of four more than $90 a year on their water bill and cut annual usage by 14,000 to 25,000 gallons.

Replacing an aging clothes washer with a new Energy Star model could slash your water use 35% to 50% per load (and use 50% less energy as well).

Installing rain barrels to capture the runoff from your roof is an easy and effective way to collect water for your lawn and garden.

Many local water utilities now offer incentives for water-saving home improvements, so be sure to check with yours.

Smart move 5. Fix your car.

If you're like most of us, you need a reliable way to get to work on time and keep your job. So use your rebate for any repairs you know you need, but haven't been able to afford.

Replace squealing brakes, or worn out tires, belts and hoses. Change the transmission fluid and recharge your air conditioner before the summer heat makes your commute even less enjoyable.

That investment might save a few bucks at the pump, prevent more costly repairs and extend the life of your car or truck.

Smart move 6. Take a class.

What skills or training do you need to take your career to the next level? Even learning to master the software you use every day can save you time and boost your productivity.

Your tax rebate will probably cover the cost of at least one and maybe a couple of classes at a nearby university or community college. And with the proliferation of online courses, you may even be able to study from the comfort of your own home at night.

Smart move 7. Invest in good health.

If you've been putting off a trip to the doctor or dentist because of money, now's a good time to make that appointment. Or, if you have high-deductible health insurance, deposit your rebate in your Health Savings Account to cover future medical bills.

Has your New Year's resolution to exercise more already faltered? Join a nearby gym or buy a home treadmill to get back on track.

Smart move 8. Take a vacation.

Lying on the beach, or spending time with family and friends, is more than a break from your demanding boss. It also boosts productivity after you return and provides a number of health benefits.

In fact, research shows taking an annual vacation can cut the risk of death from heart disease by as much as 50%.

But a long weekend is simply not enough time to rest and replenish. So using your rebate check to recover from the stress of everyday life may be just what the doctor -- and the government -- ordered.

By Tracy Needham

Interest.com Contributing Editor

Have a question about your finances? Ask us at editors@interest.com