Put away your plastic at tax time | News
CHARLOTTE, NC (WBTV) - It may be tempting this year to slip Uncle Sam a credit card.
Last year, consumers really started using them heavily again, incurring nearly $48 billion in new credit card debt.
But regular APRs for most cards are higher now than in 2011.
"Do not take on debt just to pay your taxes if you can avoid it," says John Brumbaugh of ClearPoint Credit Counseling Solutions.
He says there are multiple reasons to put your plastic away at tax time. First of all, the government will charge you what it calls a convenience fee.
"It's a flat fee with a debit card," says Brumbaugh. "But it's a percentage of your total tax bill with your credit card."
Believe it or not, your credit card company could charge you as well - and we're not just talking about interest.
Brumbaugh says tougher rules mean creditors see it as a weakness if you can't pay off an annual, expected fee like your taxes. "And as a result, they might raise your interest rate or they might lower your credit limits," he says.
So what if you simply can't come up with the cash by next week?
"Set up a payment plan with the IRS," says Brumbaugh. "Chances are the interest rate for that is going to be lower than any credit card you might use to pay those taxes."
Upcoming Events near Statesville - Iredell County
Most popular stories from nearby communities
- Officials: Water line leak forces closure of 2 lanes of Hwy 150
- Officials: Hwy 150 closed after fatal Mooresville wreck
- Report: High school PE teacher accused of texting, touching student
- Charlotte high school placed on lockdown after suspicious package found
- Plane found in Lake Norman sank in 1974, officials say
- Man shot by deputies during standoff released from hospital, taken to jail
- Charges dropped against Lincoln Co. dad in kids' deaths
- Report: Woman stole $4,000 coin collection from man "helping her out"
- NCIS-Carolinas cite Sheriff's Office for support in high profile larceny investigation
- Unwanted prescription drop off this weekend
- Happy Christmas from Salisbury, England
- Officials: 2 arrested in case of newlywed shot during break-in
- Man shot to death in car on Brenner Avenue; second shooting within 8 hours
- Local woman talks about meeting Nelson Mandela
- Warrants: Man charged with murder would inherit property if grandfather, mother died