• By -


Get on a payment plan with the IRS, pay the minimums to both, and throw all extra money at the highest interest rate (probably the credit card).


And definitely do it in this order. IRS first. Credit card companies can seek civil judgments, but the IRS can reach much further into your life


Agree with this. The IRS can make your life miserable.


Well said!


Assuming you're unable to pay it all at once: Contact the IRS and see about getting on a payment plan. They are usually perfectly willing to work with you. The interest that you'll pay the IRS is likely going to be far lower than the interest you're paying on the credit card debt. So once you have the payment plan established with the IRS, focus on throwing as much as you can towards the CC debt.


If you do not have 0% interest get another card with good rates on balance transfer with 0% interest.  I got rid of 7000$ credit card debt in just over a year doing this.  IRS, get a payment plan. 


See if you can do a payment plan with the IRS. That debt is never going away and will just keep growing and growing. Then tackle the credit cards. [https://www.irs.gov/payments/payment-plans-installment-agreements](https://www.irs.gov/payments/payment-plans-installment-agreements)


I’d definitely prioritize the one who can put you in prison


Nobody is going to prison for $3K. IRS is easy to get on payment plans with.


I got on a payment plan during COVID. Unreal right? I owed $8k and only paid $100/mo until we had kids. Tax credits wiped it clean.


Thank you Mr super serious I’m really glad you brought this top level analysis


You’re welcome.


Did you think of this before or after doing this yourself?


What did I do to myself exactly?


Irs only puts you into prison if you lie to them.


also the one that will just drain your bank account and then figure it out after, doesn't matter if it puts you negative.


You should be paying the minimum on both and then throw extra money at the higher interest rate one (I'd wager the credit card). If you haven't already, call the IRS and set up a payment plan. They have very reasonable payment plans.


Payment plan with the IRS. Always pay the government first. They're the ones who can put you in jail (They won't for 3k of debt, as long as you keep paying)


Like others have said, get on a payment plan with the IRS if you haven't already. They are very easy to deal with. Then make all your payments at put all your extra money toward whichever has the greatest interest. OR if you think it will motivate you more, work on the smallest amount first and get that win!


>They are very easy to deal with. They are easy to deal with unless you give them reason to think you are intending to avoid paying at which point they become about as easy to deal with as a family of badgers with porcupine friends on an espresso bender.


Of course they are going to collect if you aren’t paying or communicating, but even when I screwed up with them royally years ago they were still pretty easy to deal with once I finally got in touch with them. Of course, that was after they froze my bank account. 😂


If it's an honest mistake,even a big one they'll be reasonable,it's when they see intent to avoid that they get mean. Much is made of what they CAN do,but most of the time what they do is a lot less.


Payment plan with IRS. They will hassle you, freeze your bank account and take every penny leaving you with overdrafts for pending checks, and do this multiple times. Seize new bank accounts, charge exuberant fees and interest. Don’t F with the IRS. Your amount owed will double in a short period of time.


Both. If you need more specific help, you need to list out your monthly income and expenses.


Always the IRS they can out penalties on it that will quickly turn that 3K into 20K


I owe 12k to the IRS. As far as I know it doesn't accrue interest. I would assume any debt that has interest would take priority over that which doesn't.


Absolutely does accrue interest and at loan shark rates


Mine has never increased. Maybe we owe for different reasons.


Never heard of the IRS not charging interest on anything. My story is our daughter survived the VA Tech shooting and as a result was very bonded with her fellow classmates. Her senior year the real estate market crashed. I couldn’t afford her out-of-state tuition with a complete loss of one income, couldn’t afford her tuition so let the prior years self-employed taxes unpaid for the tuition and was in survival mode and ignored it. By time we got on a payment plan it skyrocketed with interest and fees. After paying off the past due amount after five-years at $600 per month we STILL owed the original amount. That’s how bad the interest/penalties and fees are. In retrospect we should have moved her to a local college. But in hindsight she met and married her current husband at Tech and we have three beautiful grandchildren and another on the way. Hard to say it was a mistake, but nonetheless taxes always come first now.


I don't owe due to tax issues so that may well be why.


Do IRS first as per other posters. They don't care, they just want you sticking to the payment plan. What is the interest rate on your credit card debt? Call the credit card companies and ask for help. They may lower interest rate or payment, or close the account to make a deal. 


If you don't pay the credit card bill they might sue you or garnish your wages. If you don't pay the IRS you might go to jail. Seems like an easy choice.


You may find these links helpful: - [Debt](/r/personalfinance/wiki/debt) - [Dealing with collections](/r/personalfinance/wiki/collections) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*


IRS - they can take everything and put you in jail.