For many Americans with standard employment, taxes are withheld automatically from their weekly, biweekly or monthly paycheck. At the beginning of each year, when taxes are filed, people rejoice when they receive news that they will be getting a sizable tax refund. Many people choose to use that lump sum to pay off or pay down some of the credit card debt they've accumulated through the year. Unfortunately, that balance on your credit card is accruing massive amounts of interest each month, while the money that the Federal government over-withheld in taxes does not.
While you may look forward to that potential refund every tax season, it's often not in your best financial interests to overpay your taxes in the hope of receiving a sizable refund. Especially if you are accumulating debt, that over-payment could be causing problems for you. If you are having a difficult time making minimum payments on your credit cards and struggling to pay your other bills, you may want to consider bankruptcy. An experienced bankruptcy attorney can help you review your debt and income to determine how you should proceed.