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For example, if you transfer $6,000 in credit card debt to a card offering 0% intro APR for 18 months, you could pay off the full amount by making $333 monthly payments with no added interest charges.
And, in a twist, another tax-related way to lower your credit card interest payment is to spend any tax refund the IRS sends your way toward paying off your credit card debt. You may not be ...
We’ve got some bad news for you: Payment processing fees most likely outweigh any benefits earned from paying your taxes with a credit card. To be clear, the IRS does allow Americans to pay ...
“While it’s possible to pay IRS tax debt with a credit card, think twice about that,” Micheletti said, noting that current credit card interest rates average more than 20%.
If your credit score is intact, a credit card with a 0% APR can also be a resource. Many cards have introductory periods of 12 to 15 months, allowing you to take on debt without immediate penalty.
Make sure to check the fees, because paying with a credit card on a $5,000 tax bill, for instance, can cost you up to $99. These fees can also reduce or eliminate any benefit you get from earning ...
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