Agency: Use credit for taxes cautiously.

Byline: The Register-Guard

Just because you can pay your income tax with a credit card doesn't mean you should.

Joanne Budde is president of BALANCE, a debt counseling service that partners locally with Oregon Community Credit Union and SELCO Community Credit Union. She said if a person wants to pay with credit to get points, miles, or some other bonus and plans to pay the balance in full, that's OK.

"If it's because they're short on cash, this is a sign that they may be headed for financial trouble," Budde said.

Of the 515 Oregon income tax credit card transactions the state had logged as of Friday, the average amount owed was $549; with the 2.5 percent convenience fee that total was about $563. According to bankrate. com's credit card calculator, if that card had an interest rate of 15 percent, and the card holder only paid the minimum balance of 2.5 percent, it would take 83 months to pay off the debt with an additional $321 in interest.

Still, if you find yourself short on cash come April 15, there are alternatives.

Rosemary Hardin, spokeswoman for the Oregon Department of Revenue, said if the credit card option is appealing because someone doesn't have the money, people can contact the department by April 15 and set up a payment plan, which may have a lower interest rate. The late-penalty fee is more for those who set up their payment plan after April 15..

Here are a few other alternatives, provided by bankrate. com:

Call your credit card company and ask them to issue a check to pay the IRS, your state, or both. Or request a cash advance put into your checking account.

Use credit card convenience checks; but read the fine print. See if you can get a no-transaction-fee check.

Get a personal loan from your bank or credit union.

Establish and draw on a home equity line.

- Serena Markstrom

FOR INFORMATION

To set up a payment plan with the Oregon Department of Revenue, or for other income-tax related questions:

Visit egov.oregon.gov/DOR/

Call [phone]