The Federal Tax Credits Blog

Question: Credit Card question…?

I currently have four credit cards that I am trying to pay off…I used one credit card that has no interest to pay two cards off. But here is my issue…I just got my taxes done and I owe over $2000 to the Fed and to the State and I feel that I have no choice but to use one of my credit cards to pay it all off. Can someone tell me how I can get ahead on all of my credit card payments? I currently send twice the minimum amount if not more on all of my credit card payments…but I am unable to save money for a rainy day.

I dont want to have any credit cards anymore because I feel that I am behind and stuff and I really want to get ahead and start saving money…

Any advise would help…

Thank you in advance.

Answer: You sound like you are on the right track by sending in more than the minimum but you may have to put that tax bill on a card.. Uncle Sam wants his ..no matter what. I think you can contact the IRS about a payment plan with them but pay attention to the interest..maybe the card would be less???? In the mean time, STOP using the cards and concentrate on paying off ONE. either the one with the lowest balance or the one with the highest interest rate.. only you can calculate which is best for you…make the minimum on the others if you must and then when one card is paid off put that money on the next smallest amount and so forth..don’t find ways to spend that first payment on anything else. I would suggest you look at your budget and see if you can squeeze out even 5 or 10 dollars a week to put in savings…every week… It would benefit you in the long run to put that on a bill BUT it might be a good psychological boost to see SOMETHING in savings..good luck

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