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Tax return can help lower credit card bill, as can debt management plan
By Edith Barlow on Mar 23rd, 2010
One benefit to filing taxes is that a person may get a return from the government.
And though in the past consumers may use this money to buy something they want, tough economic times may cause some to be a bit more frugal and use their tax return on more sensible options. In a recent column for CNNMoney.com, Walter Updegrave said that trying to pay off debt is one option for that money from Uncle Sam.
"Credit cards are a prime candidate," Updegrave wrote.
Paying off credit card debt can not only allow people to be put on better financial footing, it can also save them money in the amount of interest payments they would end up making on their debt.
Experts have noted that it can take a person years to pay off credit card debt if they only make the minimum payments. Recent changes in federal law may make that more evident to consumers, as credit card statements now must report how long it would take someone to pay down their plastic if they only made minimum required payments.
Another way consumers may be able to save on the amount of interest they pay is a debt management plan. Such a program can offer a lower interest rate to pay off credit card debt.
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