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Nice Warm Day

April 24th, 2007 at 04:03 pm

Today was a nice, warm day but we are to get storms tonight. I had to drop one job- its just too much. I need advice- I am helping mom pay a $9,000 loan. I was going to pay off my federal taxs first, which has grown to $10,000 including 2006's filing and penalties and interest, but the loan is 24 % interest and the taxes are 5-6%, I think, so shouldn't I pay the higher one first?

Posted in Uncategorized | 4 Comments »

4 Responses to “Nice Warm Day”

  1. nance Says:
    April 24th, 2007 at 04:56 pm

    Since your mom's debt is at 24% interest, I wonder if she has bad credit. If you paid off her debt, is she likely to get in debt again? It is great to help, but not "enable". I helped a relative to the tune of about $13.000. and he just went and got into debt again, and owes more now than before. Sometimes, it is better to let someone figure out, on their own, what they got themselves into, and what to do about it. There are always extenuating circumstances, but we can't always "fix" the problems of the people we love.

  2. monkeymama Says:
    April 24th, 2007 at 05:54 pm

    Don't know your exact situation, but for federal it is 8% interest plus 6% penalty, or 14% grand total. When you add state (depends on your state) you could really be paying more than 24%. Plus the government will start coming after your assets unless you work a payment schedule with them. They get aggressive pretty fast. Just FYI.

    Sounds like just federal? I'd probably pay off both at the same time. Ignoring the Feds is not good. Wink

  3. Ima saver Says:
    April 25th, 2007 at 09:46 am

    Pay your income tax first!!

  4. SicilyYoder Says:
    April 25th, 2007 at 03:30 pm

    I decided to pay my taxes first- thanks for all the input.

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