If you had to borrow to pay taxes, read this

If you had to go into debt to pay your federal income taxes this year, the National Foundation for Credit Counseling offers some tips:

•Establish a weekly savings target. Take a hard look at your budget and see if you can squeeze out money. Start by eliminating expensive meals, vacations and other discretionary expenses. Look for ways to save on necessities like food, utilities and clothes. Put off big-ticket purchases like a car or a big-screen television.

•Generate extra cash. Inquire about overtime opportunities. Take a second job until your tax debt is paid. Hold a garage sale and sell that bicycle or couch that has been taking up space.

•Develop a repayment plan. However you came up with the money to pay your taxes, you’ll need to pay it back. Don’t make a bad situation worse by falling behind.

•Try asking for a lower rate on your credit card. Call your company and tell them you’ve received better offers in the mail from other credit-card issuers. Even a modest drop in interest rates can save hundreds of dollars a year.

•Adjust federal withholding. Be sure to adjust your W-4 so that you withhold enough money to pay fully your federal income tax in the future.

•Consult a credit counseling professional for help. If an unexpected expense like a big tax bill causes you to go into debt, you may not be saving enough. Treat your tax problems as a wake-up call to get your finances in order.