POSTED: Friday, February 25, 2011 - 6:44pm
UPDATED: Tuesday, March 8, 2011 - 5:02pm
Credit cards can you put anyone in a big hole fast.
Be sure to avoid swiping on that card on certain items.
1. A big tax bill. A tax bill from the IRS could make a nervous taxpayer reach for a credit card. But don't do it. "Federal income tax is right at the top of the list of things not to pay with a credit card," says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies. "When people get in this type of situation, it's usually a fairly large tax bill, and it can be difficult to pay off those credit cards." In addition, you'll pay a processing fee that could be 2 percent or more of the total amount you pay by credit card.