So I've only been working about a year and half now. And when I got out of my master's degree I had about 21k in credit card debt. (My school cost about 160k undergrad for tuition and housing plus books and stuff). I got a 120k grant so that helped a ton and 25k worth of loans the rest was paid by all the summer internships I got. I admit I was pretty stupid with my finances and used my credit cards to live off of. Anyways I collected about 6 years worth of credit card dept but I worked my butt off for the past year and got it all down plus my 25k worth of school loans down to 8k.

There is one thing which I screwed up though. I have a steady job that pays me montly and witholds taxes with every pay check. But I also have a smaller side consulting job which I do on the weekends to help with the added dept. Well the first half of 2006 I was a student so I got a lot of tax breaks and the second half the witholdings from my other job actually covered the taxes from the 3 months of consulting. I TOTALLY forgot about 2007 and that I would be working the entire year and forgot to pay quarterly taxes in addition to the withholdings. So I did my taxes and I owe about 6g's. Argghghghgh I have about 3g's saved up cause I started saving after I payed off the credit cards, so that leaves me 3 g's in the hole. Which I can cover with the next month of work.

So my question Should I pay my taxes on the credit card which has a happy balance of ZERO and take the hit with the 2.5% interest for convenience fees or get penalized by the IRS for not paying all of the taxes owed on time.

I learned my lesson and i'll make monthly payments on my consulting work now that I know the witholdings on my other job won't cut it. I'm glad I learned this while I'm young. What should I do?