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During tax season, consumers rely on their tax refund to take care of expenses, pay down credit card debt, or to just plain old ball out of control.
Imagine the surprise, though, if you find you’re actually the one of millions has to pay up to the IRS.
More than likely you have been depending on that money and have no real way of paying off hundreds or even thousands of dollars. So how do you go about it? Kelly Phillips, a contributor for Forbes, created a list of five ways that you can pay off your taxes when you don’t have the cash available.
- Put it on your credit card.
- Re-finance your home
- Enter into an installment agreement
- Consider an Offer in Compromise (OIC)
- Ask for more time.
Options such as putting it on a credit card should be used when there is no other way; it simply leaves you in debt. If your goal this tax season was to pay down your debt and save more money it is not ideal to add on more. These options should be used with discretion and all the pros and cons must be weighed. So, even if you are in a bind, you can make financially savvy decisions.
To find out more visit Forbes.