04-06-2012 07:55 PM
I know that you are supposed to pay off credit cards with the highest balance first but I owe back on taxes. I have approximately 10,000 in savings. I have a 5000.00 balance on one credit card and I owe about 5000.00 in taxes due to acruels and interest added. Do I need to pay off the taxes and just pay the minimum balance on my credit card until I pay off the taxes...Or do I just take my savings and pay everything off and start off from scratch building up my savings again...
04-06-2012 10:02 PM
If it were me, I would take the money out of my savings to pay my taxes, & that's it. I'd continue paying my credit card the best I could, & keep the rest of my savings.
04-08-2012 07:45 AM
I would definitely pay off the taxes immediately. As for the cc, I would try to negotiate a lower interest rate and pay off in chunks as best, and as fast, as I could.