Can I Pay My Taxes With a Credit Card?
Now, we know these things cannot always be avoided. Desperate times calls for desperate measures. When bill collectors want their money, they’ll come close to harassing you for it and could care less what you did to get it. But getting one monkey off your back only to gain another creditor calling you at all times of the day isn’t going to solve your problems. At best it will only delay them from making your life more stressful.
The Illusion of Free Money
Managing credit cards is a tricky thing, especially if you have a good line of credit. You’ll receive all types of credit card offers with great introductory interest rates and 0% balance transfers. Should you choose to open a line of credit with one of these banks, you’ll even receive a few blank checks that also offer 0% interest. Who wouldn’t want that?
These banks count on you to take advantage of these opportunities. In some cases, they are great ways to acquire a certain amount of cash that you may have had to go through a personal loan to get. But we’re not talking about that. We’re addressing whether or not you should use a credit card to pay your taxes.
When to Use Credit Cards
Credit cards should only be used as a last resort on an emergency basis. They also should be used as another form of payment even if you already have the means to pay for something. Some people prefer to use the credit card for the amount of cash back privileges their bank might offer, or even gain frequent flyer miles. However, if you’re totally out of resources and you owe the Internal Revenue Service (IRS), then it’s probably better to arrange an affordable monthly payment agreement directly with them. If you’re uncomfortable talking to the IRS, then you can hire a tax relief professional to take care of such matters for you.
Here’s why you really shouldn’t use a credit card to pay off your tax debt:
While you might be able to alleviate your tax debt, you now have occurred another line of debt that also comes with it’s own terms of interest and late penalty fees. Chances are if you’re even one day late making your payments, any introductory interest rates and 0% balance transfers will immediately cancel out. So now, your financial woes may not lie with the IRS, but they still exists. And if you’re unable to take care of that credit card debt, it can and will be reported and affect your credit score, lowering it and preventing you to get low interest car, mortgage, or personal loans.
If you’re thinking about using your credit card to pay a tax debt, consult with tax relief professionals to find out other alternatives. Success Tax Relief’s mission is to alleviate any tax issues you might have. No debt is too big or too small. Contact us through our website or call 1-877-825-1179 today.