Stupid Tax #3 – Paying Your Tax With High-Interest Credit Card.

Truth be told, what you owe the Taxman – the Taxman will get! But to use a high-interst credit card to pay the taxes may not make too much sense.

Although paying this way is a still better than not paying your taxes at all, but you should not just plunge into further debt to pay the Taxman. If you have to borrow, compare the interest rate of your credit card with that of a personal loan from your bank or credit union. The idea is to incur the least amount of interest owed. Be dilligent to pay off the loan as soon as possible and do what you can to avoid the same situation next year.

To pay your taxes on time, you may need to (depending on your tax bill this year) begin paying small amounts throughout the year instead of having to cough the whole amount all at once.

In the UK, once your tax bill has been calculated, the Inland Revenue starts to charge a little interest on the outstanding tax which is far, far less than the interest on any credit card.

Please don’t pay this stupix tax.

Niyi Adeoshun
Money Management Coach

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