In the past I have worked with a client who ran up huge credit cards bills every year. They then used their dwindling federal refunds to pay off their credit card balances.
I went on to explain that they were accruing 20%+ interest on their balances and the IRS was paying them nothing for the use of their money.
I suggested that they change their methods and change their withholding to a more reasonable level and use the extra cash to pay off the credit card s every month. Thus lowering or eliminating their credit card interest.
I warned then that they should also curb their spending, since they were not saving anything for their futures.
They kind of took my advice. They adjusted their withholding. They briefly used the balances for credit cards. Then they kicked the spending into high gear…
There are some clients that should only be allowed to spend cash. No credit cards whatsoever.