Does it ever get easier? - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

snickers · #1 (**permalink**) 07-20-2007, 09:42 PM

Is there some point in time, you can remember when paying off your debt got easier? We have made really good progress up untill this point. We have paid off all our credit card bills. and are current with everything else. But it seems like we keep getting knocked back two steps for every step forward. We still need to buy some furniture, I would love to buy my love a engagement ring and we are still so far in the hole (me for 40k and her for around 20k mostly sally mae) that I can barely see light.

Ok Im done feeling sorry for myself.. Have a question I would love answers to if you can.

1- I owe 10k on a second mortgage and I owe the IRS 10k
Im pretty sure I maxed out all the penalties and interest on the irs loan. Ive been on a payment plan for the past 3 years with them. The second mortgage is at 8.0% interest. Which bill should I throw more than the minimun payment at?

Thanks.

tater03 · #2 (**permalink**) 07-21-2007, 12:34 AM

When you say you maxed out the penalities and interest does that mean you are not being charged anymore? Because if you still are being charged from the IRS I would have to say pay them off as fast as you can. But I say that because I hate dealing with the IRS at all.

Dru · #3 (**permalink**) 07-22-2007, 05:50 PM

The IRS is most likely still adding on interest, and they are not necessarily the lowest rate either. They make it ugly on purpose, they want to be paid first. Additionally, they will react quickly in garnishments, liens on your house, and so on. A lien can show up on a credit check which will effect life insurance policies, auto insurance, selling your home, getting a loan, or even getting a job. Get rid of the IRS ASAP!

tater03 · #4 (**permalink**) 07-22-2007, 09:57 PM

I didn't think that the IRS ever quit adding on interest. I would agree then most definently pay them of as soon as you can.

katharina · #5 (**permalink**) 07-28-2007, 01:42 PM

Quote:

Originally Posted by tater03

I didn't think that the IRS ever quit adding on interest. I would agree then most definently pay them of as soon as you can.

Same answer here... I'd definitely not want to mess with the IRS when it
comes to owing them money. There are reasons for all the horrid "the tax
man cometh" jokes, so I'd work on that one first for sure.

parise1 · #6 (**permalink**) 08-01-2007, 06:47 AM

The best you can do is cooperate, and like others are saying get them paid off as soon as possible. Work out a payment plan and do not deviate from it.

Debt Elimination Nation · #7 (**permalink**) 09-06-2007, 03:15 AM

If I were you, I would pay off that IRS debt first. This is a debt that looks much worse on your report than a mortgage does. The mortgage is a good debt and lenders know this.

If you interest rate on the mortgage is adjustable, just be careful that you payments don't get to high.

Also I want to recommend to you that you should start learning how to create streams of income. If you have paid off almost every debt, and you need to purchase furniture and what not then make more.

I am just recommending learning this slowly because after you eliminate your debt investing in yourself is the next logical step.

Thanks!

Fred333 · #8 (**permalink**) 10-02-2007, 08:46 PM

I would always invest in yourself. Payment plans and discipline is how you get out of debt. It might take some time but you will be better for it in the end.

Ingtar17 · #9 (**permalink**) 10-22-2007, 05:39 PM

Pay IRS first for sure. They can make your life a lot worse very fast. I'd also recommend reading some blogs about other people trying to get out of debt. It can be very encouraging to see that others are able to dig themselves out of the same hole you are in.

Minerva58 · #10 (**permalink**) 01-03-2008, 03:27 AM

Snickers- jewelry is a waste of money and just an excuse to get mugged. And that's advice coming from a woman! Take that money and put it to work.
Also, as a middle-aged woman, I can tell you that if I had it to do over, I'd have a card table, a lawn chair, and a futon for company. Furniture is a scam.
Oh, and get a comfortable bed, too.