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I have a student loan that went into default in Feb. I got a letter from the department of education letting me know that any income tax return I am due will be offset for the loan (about 7500.00) I make pretty good money with my new job and I'm living with my parents and don't have a car so I can actually pay this off by April before I file my taxes. The thing is I have other things on my credit that I need to pay off and I would like to attack those as soon as possible. My question is should I allow them to take my income taxes to pay the debt and kill off everything else negative on my credit report. I am moving to a different state in December of next year and I'm trying to clean up 20K worth of bad debt.

My bills are next to none and I gross about 2230.00 per month and have two children so not much is taken for fed tax. I net about 1900.00 a month after what little taxes are taken in addition to 401K and my insurance. My only other bills is my cell and my storage.
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