What is the BEST payoff rule?

[Aleta]

I agree with Poundwise as well with the repayment plan. A lot also depends on how much your monthly payments are as well. Although some say not to pay off the $500., it could be that that payment could be a high payment of let's say $75. or $100. a month anyway. So, once that payment is paid off, that payment could be added to the second one to be paid off. I think that it's important to see some kind of results or you would become discouraged. When we did it that way, I saw on a smaller scale how much easier to pay off a bill then I thought it would be. It gave me confidence and encouragement to continue. We did become debt-free like that and for us it worked.

I'm sure that the IRS will except payments as long as they are on time.

[areareare]

Good for you , you got to this point .
I would also suggest to pay off the IRS .

[creditcardfree]

I've known people in debt with the IRS. I would pay off this money as soon as possible. If you don't pay the IRS the can and will pull money from your bank account, wages, ect. Of course, as other suggest, you can make payments with them. I would do everything in your power to pay off these IRS debts as soon as possible. I probably would even let medical bills go to the wayside for awhile. I might call Sallie Mae for a deferred payment of some kind while I work on my IRS debt. I would sell anything I could put my hands on.

I might even borrow on a credit card....and that is coming from me creditcardfree who doesn't use credit cards. I would do everything in my power to avoid owing the IRS any money for any length of time. I'd rather owe others, before I would owe the IRS.

You can do this. Put all your effort into the IRS debt and you'll be out of their hair in no time. You currently have $3973 extra to put toward debt each month...if I read your spreadsheet correctly. You could be done in 2-3 months, but it might require you to put off paying some other debts.

Good luck to you. Keep up the good work.

[Aleta]

I don't know what your credit rate is like but maybe you could qualify for one of those teaser rates and combine 1,2, or 3 bills that would include your IRS debt. If your rate is about 6.5%, that's not that low either. You look as though you're self-employed by the amounts that you owe on the different years. Are you self-employed?