Twelve-hundred dollars (or even $600!) is a nice chunk of change by any measure. And, that’s what the President’s tax stimulus check could bring to many Americans’ mailboxes this Spring.

After finishing jumping for joy, what should the consumer do with this windfall, especially during an economic downturn? Spend it? Save it? Invest it? All three options might be feasible, but most importantly, smart consumers will prepare for the current economic downturn by getting their finances in order, explains Susan Aulie, senior director of Financial Counseling for Lutheran Social Service of Minnesota.

“It is time to take a hard look at current debt obligations, as well as any anticipated large expenses,” Aulie said. “No one ever regrets being prepared, and now is none too soon to address riding out a recession.”

Aulie offers the following advice to consumers:

• Be familiar with your financial situation. There’s nothing like seeing your financial picture in black and white. Write down all sources of income from each wage-earner in the household. Next, subtract all of your monthly living expenses, things such as rent or mortgage, utilities, food, insurance, etc, followed by secured debt payments and then other credit obligations. When times are tough, it’s critical to pay priorities in this order.

• Pay down debt. If you’re saddled with double digit interest rates on your credit cards, this is likely doing you the most harm. Financially speaking, the money should go to pay off or pay down the balance with the highest interest rate. However, some consumers find it more psychologically rewarding to totally pay off multiple small debts. Either way, paying down debt is the number one best use of this money.

• Catch up on any past-due payments. Late fees can be close to $40, not to mention the damage done to your credit report and score. Get current on any accounts that have fallen behind, and stay that way.