4 Solutions That Will Help You Pay Off Your Tax Debt
To every problem, there is a solution. Not all of the solutions may be the wisest choice for you, especially when it comes to resolving your tax debt. It takes a certain finesse to handle money and some solutions may not be recommended for everyone, especially the ones who cannot handle money wisely. Nonetheless, they are solutions. It’s essentially up to you to determine which one of these solutions are the best for getting you out of tax debt.
1. Create a savings account.
Creating a savings account might seem impossible for anyone in an exceptional amount of debt. However, the truth is you can’t afford not to create a savings account. Many people think that the best time to create a savings account is to wait until they’re completely out of debt. Unfortunately, that time may not ever come for some people. So, if you can try to put at least $25 away for every weekly or bi-weekly paycheck, that will be $100 that you’ll have to put toward reducing your tax debt.
2. Use low interest credit cards sparingly.
This solution is not for everyone, but it’s an option. Keep in mind when you’re using a credit card, you’re taking out a line of credit—it’s money that you’ll have to pay back. So, you’re really increasing your debt. You’ll also have to pay the amount back with interest. We bring this option to your attention because many credit card companies will issue blank checks to their holders offering zero percent interest. If absolutely necessary, you could write a check for cash to your bank, deposit it into your checking account and pay all your tax debt this way. This would only work well if the amount you took out eliminated ALL of your debt. Otherwise, you’d just be occurring another line of debt.
3. Take out a personal loan.
This option follows the same concept as taking out cash from your credit card to pay your debt. The difference here is that you’ll be able to ask for a larger amount with a personal loan whereas you can only take out as much as your credit card allows. With a personal loan, you’ll also have to go through an application process and get approved. Interest rates will apply.
4. Use your refund from the prior tax year to pay your taxes.
Many people think of their tax refund as free money when in fact, it’s money that is owed to you by the government. It’s not free money. It’s money that you’ve already earned and it comes from the taxes that are taken out of your wages each paycheck. You can think of this as a type of savings account. By doing this, you’ll already have the mindset that whatever refund amount you receive will go directly toward paying off any prior tax debt.
Hire a Tax Relief Service That Will Work for You
You could also contact the Internal Revenue Service, but they will only give you so much information. The representatives work for the IRS, not you. If you’re looking for someone to work on your behalf, contact Success Tax Relief to help you find the best way to get out of tax debt. Call 877-825-1179 or contact us online to schedule a free consultation today.