Archives
Pay Off Your Debt and Pay Your Taxes - It Might Be Hard
Mon, 12/22/2008 - 21:38We’re currently in one of the toughest economic periods that this nation can ever remember. Never before (well, not in most baby boomer’s eyes) has the economy ever been so bad. Between people taking out poor mortgages and sub-prime mortgages, people are really hurting right now. But, one the scariest things is that the banks are lending money. They’re just not borrowing and lending which hurts even more. But, there are some places that you can get a loan. These secured loans are used for a lot of different reasons. If you get one, though, do yourself a favor and pay it off regularly. Don’t hold on to it.
My biggest concern with the economy right now is that it hasn’t been this bad all year. It’s gotten progressively worse and when tax time comes in March, what are people going to do? They can barely afford their houses right now, let alone car payments, insurance, and gas. Now they have to pay taxes as well? One of the things that is going to hurt is that if they send a lump sum, they’re going to be wishing they had that money.
There are going to be some questions about whether or not people are going to be able to afford these taxes. If they can, thank God. If not, people will be hurting. Regardless, though, we definitely do need to get out of this economy crunch as fast as possible.
My biggest concern with the economy right now is that it hasn’t been this bad all year. It’s gotten progressively worse and when tax time comes in March, what are people going to do? They can barely afford their houses right now, let alone car payments, insurance, and gas. Now they have to pay taxes as well? One of the things that is going to hurt is that if they send a lump sum, they’re going to be wishing they had that money.
There are going to be some questions about whether or not people are going to be able to afford these taxes. If they can, thank God. If not, people will be hurting. Regardless, though, we definitely do need to get out of this economy crunch as fast as possible.
The Interest on Debt is Tax Deductible, But Get Out of Debt
Mon, 12/22/2008 - 21:21The way the IRS works is they tax you on anything that you earn minus, of course, anything that you have to pay. For instance, if you earn ten grand a year and pay six grand a year in interest, what you’re going to have is four grand a year in taxable income. But, that doesn’t mean that you should be accruing debt because you think that you’ll save money in the end. The more debt you have, the more interest you have to pay and that’s the interest that’s tax deductible. But it’s still interest and money you don’t want to give away.
One of the things that you should do is Debt Consolidation. Put it all together so you’re paying one interest payment, not four or five. The reason this is suggested is because you’re not spending so much money on interest. Sure, if you get the right Tax Help, they’re going to say you’re paying a little more in taxes. But, the amount of money you’re saving because you’re not spending so much on interest is a lot better than the money you might be saving on your taxes. So, do yourself a favor and get out of debt as fast as possible. Taxes are better than debt.
One of the things that you should do is Debt Consolidation. Put it all together so you’re paying one interest payment, not four or five. The reason this is suggested is because you’re not spending so much money on interest. Sure, if you get the right Tax Help, they’re going to say you’re paying a little more in taxes. But, the amount of money you’re saving because you’re not spending so much on interest is a lot better than the money you might be saving on your taxes. So, do yourself a favor and get out of debt as fast as possible. Taxes are better than debt.
