Hello everyone. This year, I’ll be receiving a bonus, and I’m thinking if it would be better to use the money for credit card debt repayment or unpaid taxes. roughly the same sum of money. Regards ahead of time!
Since the interest rate on the cards is probably far higher, I would pay them off first, unless the taxes are over due and there could be a lien on the property at any moment.
If your IRS-approved repayment plan is in place, the interest rate is far lower than that of your credit card. They have reduced rates and longer repayment terms.
Put your credit card first, but make sure you pay your taxes on time (provided your payment plan was approved).
Tax interest rates are probably far lower than credit card interest rates. even with a fine
Now, the first thing you should do is pay your taxes and give the damn credit card company a call to arrange for a payment plan so that your card can be closed.
Taxes! Taxes are a pain in the ass, and when you owe them, they pursue you with far greater cc business authority. Really, don’t play around with the authorities! Anyone who says otherwise is just wrong!
It’s really difficult to figure out the interest and penalties on taxes—it’s so confusing. Are you already on a tax payment plan? Can you keep up with this year’s taxes?
The only reason I suggest prioritizing taxes is because it can become a never-ending cycle—paying off old tax debt while trying to keep up with this year’s quarterly payments.
That said, the IRS is surprisingly easy to work with when you owe money; you can set up a payment plan. If you decide to prioritize credit cards first, just make sure you’re not digging yourself into a hole with taxes. I speak from a lot of experience!
taxes. Interest and penalties are imposed. just big interest on CC. Is it possible to obtain a low-interest personal loan on a different credit card to settle the high-interest one?
Taxes first always. They can garnish your wages and if you don’t file them even jail time.