By Dave Bullard
Oswego, NY – State and federal income tax forms are due this week. Many of us will get refunds, but some will have to pay. An expert said people often turn to their credit cards as their first option, when it should be their last resort.
Gary Thurber of the Consumer Credit Counseling Service of Central New York said some people will use a credit card to pay a big tax bill and that is a bad idea.
He said a credit card will only add debt to the tax bill and can put your credit rating at risk.
Thurber said it is better to work something out with the IRS. He said there is one plan that taxpayers can use if they have an outstanding debt.
"After 120 days, you can pay a user fee which is $105.00 and set up installments not to exceed 60 months. Their rate right now is at 4%, but the catch to that is, all future tax bills would have to be paid in full and on time, so it's like a one time option," said Thurber.