Taxes And Borrowing Money-Might Go Hand In Hand

Wednesday, December 26th, 2012

The economy has hit a lot of people hard and left so many struggling to find enough money to cover their bills. Because of this, people all across America are waiting anxiously for their tax returns to give them just a little money to help things out. Taxes and Borrowing Money do not really go hand in hand, but if you need money now you can get a loan on your tax return to help pay off those pesky debts.

Sounds like a good deal right? Getting your tax return a little early to help out. Tons of people do it because they really need the money, but is it the right choice? While you may be desperate to get some money coming in, is borrowing from your tax return the best option? There are three main reasons why you should not borrow from your tax return and instead look for alternatives.

1: Lots of fees. When you look towards your tax refund for money, you should expect to pay a ton of fees. There are fees for just about every aspect of the loan, from the initial loan fee to a prep fee to even an electronic filing fee. If you are looking to get a couple grand out of this, when all is said and done with the fees you may only actually be getting a couple hundred.

2: Massive APR. When looking towards Taxes and Borrowing Money from your return you will have to deal with an annual percentage rate increase of anywhere from 200% to 2000%. If you are struggling for money as is, can you really afford to be shelling out all this extra cash? Odds are you are not in a position to pay that much, yet even though that may be the case, many people still do it.

3: IRS is able to withhold your refund. You are putting a lot of trust in the IRS and it is very possible that your trust can be betrayed. If the IRS has any problem whatsoever with your tax return they can hold onto your refund forcing you to be unable to pay back your loan for months. All the while you are still responsible to pay the high interest rates.

People often overpay on their taxes so that they can get a nice big lump sum at the end. They think of it as a nice reward, letting good old uncle sam hold onto their money for them. But when it comes down to the wire and you need money now, delving into your Taxes and Borrowing Money from your return may be the only option you have left. And then you are stuck with a ton of fees.

Instead of taking that route, think about saving that money next year. Instead of overpaying on your taxes for a nice return, invest that money somewhere. When the government holds onto your money it is not generating interest. If you invest wisely you can actually get more money than you put in. That can go a long way to alleviating your financial problems.

Debt Settlement

Sunday, October 28th, 2012

Getting a debt settlement plan is one of the ways that can help you get out of the endless pit of debt you might find yourself in. There are countless reasons for why people find themselves in debt. It is commonly believed that those in debt are there through their own fault and reckless spending. But this is not always the case.

You can find yourself deep in debt due to circumstances in your life that you have little to no control over. Whether it is from unexpected medical bills or an accident of some sort. If a situation arises that you have no control over, it is not fair that you should be left with that mountain of debt.

So in order to help people claw their way back to financial security, various debt consolidation plans exist to help you out. However getting into one of these plans is not all that easy. There are a lot of steps you must take and requirements you must fulfill before you can jump into one of these settlement plans.

A debt settlement plan is where you go to your creditors and attempt to negotiate a reduced amount that you have to pay. They do this when you are way past due on your payments and are unable to pay the money you owe. However they will only allow this if you have a valid reason for not being able to pay your debts, so for those of you that are reckless spenders this will not work for you.

However if you are legitimately unable to make your payments because they are simply too high and you do not have the money, you can look into a settlement plan in order to pay off the debts you owe. You can do this by yourself by going to the individual creditors and try to negotiate yourself. But it is advised that you seek out a professional who specializes in getting settlements.

A professional debt counselor can look at your income and help you figure out the most fair payment plan that you can actually abide by. He will then present this plan to your creditors and try to negotiate a reduction in your payment.

With the economy the way it is, and with so many people finding themselves in debt, this paves the way for scam artists to make easy money by ripping off the desperate people trying to get out of debt. So when looking for a debt settlement specialist make sure to do your homework and to only get someone who can really help you.

You do not want to get ripped off by some scammer so make sure you look into his history, what company he is from, the company’s history, reviews and anything else to help you get an idea of their legitimacy. Also look into what the Better Business Bureau has to say about them.

Being stuck in debt is a stressful experience and getting out of it can be an immense challenge. But there are methods to help you regain financial freedom.

Loans For Debt Consolidation-So Many Are Struggling Today

Tuesday, June 5th, 2012

With so many people struggling just to make their minimum payments today, there is more and more need for some sort of help and loans for dept consolidation is one of those options.

Now, before you run off to your local bank branch to apply for loans for dept consolidation there are some important things you need to take into consideration.

For one thing, if you have a long history of not being good with money and getting in over your head, the thing that you should do before you get a loan is to get some financial counseling. You need to make sure that you can handle your money or you will just continue to repeat the same financial mistakes over and over again.

It is important that you carefully think the whole process through. For example, if you are bad with money and don’t have a lot of self control and you tend to rack up a lot of credit card debt, you should hold off on getting a loan to consolidate your debt.

If you are bad with money and you get a loan you may actually end up with much bigger problems. If you get rid of your debt with a loan only to go out and rack up more debt not only will you have to pay your “new” debt you will also have to make payments on your debt consolidation loan too. You will have twice as much debt to pay off.

Another thing you need to remember is that, just like with any type of loans, you will have to have a pretty good credit score if you want to get a loan. No bank will even consider you for a loan if you have bad credit.

It does sound a bit odd, I know. The idea that you can’t get a loan to get rid of some debt because your credit is bad, but that is the way it works.

If you have these issues and just can’t get a loan you still do have some options. The best one is to pay off this debt yourself. It will take time and it won’t be easy but if you want to do it badly enough you can do it.

It’s actually pretty easy to do. Just make a listing of all your monthly debts and expenses and figure out how much money you have left over at the end of every month. All you have to do is add that amount of money to the minimum payment you make on your smallest debt.

If you do that every month until you have the smallest debt paid off you can repeat the process over and over again until you have all the debt paid off. Like I said above, it will take time and it will take a lot of discipline. As long as you can stay on target and continue to pay off your smallest debt first, you can be debt free all on your own with no additional loans.

There are loans for dept consolidation that may be able to help you out, or you can do it yourself. Whichever option is best for you, it is nice to know you have options.