Tax Return Personal Loans – Borrow Money to Pay the IRS Today
Posted on | February 4, 2010 | No Comments
Beyond the inability to pay common things like bills and ret, many Americans are struggling to pay their 2009 taxes as the New Year is rolling in. While rent and bills may be a major issue, dealing with the IRS and taxes is a far greater issue. Many Americans find themselves in a position of taking out personal loans just in order to pay their taxes, and clearly this is an issue.
Personal loans tend to have a much higher interest rate, and can seriously damage ones credit, however not paying taxes could result in a much greater issue such as the IRS taking control of your vehicles, home, etc. So, what happens if you must take out a personal loan in order to pay your taxes?
Taking out a loan and going into debt to pay your taxes is just like reverting your debt to another firm. If you chose not to pay your taxes due to a lack of funds you would be in debt to the IRS, while serious consequences can occur from this they typically would not start happening until 2 years or more of not paying your taxes. Therefore, taking out a personal loan now just means you are in debt to a bank as opposed to the IRS.
Some American citizens feel that being in debt to a bank is far better than being in debt to the IRS, and therefore choose to take out personal loans in order to pay their taxes. While these loans may have high interest rates, if citizens are getting returns from their taxes they may be able to put these returns towards their loans and pay them off early in the year. If this is the case, the loan merely helped benefit the citizen’s credit and allowed them to pay their taxes. However, there is hardly ever the case. Many Americans find themselves in a great deal of debt after taking out these loans because they are unable to pay off the loans due to spending their tax returns on other needs / wants.
While a personal loan may seem like a good idea for paying taxes, one should think very critically about this decision in order to not ruin your credit or find yourself in a bad situation with the IRS.
Author: Sylvia Wayne
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