i owe the irs 4000, personal loan 1000, and credit card 500. i really want to pay off the irs, but i don't have that much cash upfront to pay it off right now. should i take out a loan? i don't know what to do...
2007-10-03 05:01:27 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
IRS definitely, then the credit card
2007-10-03 05:04:35 · answer #1 · answered by Anonymous · 0⤊ 1⤋
IRS FIRST !!! because there will be interest every month until it is payed off ...i would call the IRS and make payment arrangement with them and explain what is going on and maybe the will help you out and put you in the right direction of how to pay off the bill...then go with the credit card and personal loan...trust me i owed the IRS and just called them and they were helpful and maybe they will give you a extension........
2007-10-03 12:11:27 · answer #2 · answered by samiemily 1 · 0⤊ 1⤋
The IRS will work out a payment plan and the interest rate you pay is probably less than the other debts.
Pay off the highest interest rate debt first. That's probably the credit card. Squeeze your budget and throw every penny you can at this debt.
You should be able to pay all this off within a year or two.
2007-10-03 12:09:48 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
I would say: pay the IRS first. This is one of the time I will borrow from credit card to pay it off. You can file bankruptcy if you owe money with your credit card companies (some restrictions) but you definitely have no option to file bankruptcy with the IRS. Look for credit card with low interest rate and to borrow the money and pay the IRS, after that, try to pay off the credit card as fast as you can. Good luck.
2007-10-08 21:10:53 · answer #4 · answered by rs 2 · 0⤊ 1⤋
Step one: Call the Irs, and ask them to put you on a payment plan, it is like 20-40 a month, tell them you lost your job.
Step two: Personal loan? who do you owe? If it is a commercial institution, tell them that you are about to file for a bankruptcy, or you have about $200 to pay them off. If they agree, get that in writing.
Step three: Same story with the credit card: Try to settle with them for 20 cents on a dollar, and close your account.
2007-10-03 12:15:43 · answer #5 · answered by ogantom 2 · 0⤊ 0⤋
The IRS will usually work out a payment plan with you. Call them and find out what you can do. Otherwise, start paying off your debts smallest to largest. Create a budget to follow and cut-up those credit cards. Debt-free is the only way to live!
2007-10-03 12:05:48 · answer #6 · answered by ? 4 · 0⤊ 0⤋
Pay off the one with the highest interest rate first, unless you are facing jail time from the IRS. Pay a minimum payment on the others.
2007-10-03 12:06:32 · answer #7 · answered by jjohnsen0 2 · 1⤊ 1⤋
CREDIT CARD SHOULD BE FIRST, AS IT HAS THE HIGHEST INTEREST RATE. IF YOU CAN PAY IT ALL OFF, YOU WILL REALLY BE AHEAD! AS FOR THE IRS, THERE WILL BE A PAYMENT PLAN THAT YOU CAN WORK OUT BY JUST A TELEPHONE CALL! GOOD LUCK.
2007-10-03 12:06:04 · answer #8 · answered by brxny2000 5 · 0⤊ 1⤋
The IRS for sure. You dont wanna get into trouble with the IRS.
2007-10-04 15:12:29 · answer #9 · answered by heybulldog 5 · 0⤊ 1⤋