Bankruptcy Offers a Way for Atlanta Taxpayers to Stretch Income Tax Refunds
Using your tax refund to pay down debt certainly doesn't sound as fun as, say, buying a flat-screen TV or taking a much-needed vacation. But in can help get you closer to those things.
Nearly 45 percent of Americans are opting to use Uncle Sam's refund to lower their tax burdens this year, according to the National Retail Federation. And they're on to something. Reducing debt - and therefore interest - will stretch your tax refund the farthest.
That means more money in your pockets in the future - money you can use for paying the bills, saving, splurging and even taking that vacation.
Let's say you're paying the minimum balance on your credit card debt each month. Since the average minimum covers little more than the interest your creditor charges, your debt burden never actually gets paid. So you'll keep shelling out that interest - potentially forever.
The more you pay over the minimum, the faster your debt will shrink. And the fewer years you'll be stuck paying for it. If times have been too tight to cough up more than the minimum, that tax refund might be just the motivation you need to stop making excuses and get started.
You don't even have to put the whole refund towards your debt if you don't want to. Maybe treat yourself to something something small - a new pair of shoes, a nice dinner out - and set aside the rest for your debt relief plan. Don't look at it as money being spent - look at it as savings deferred. When you lower your debt burden now, you'll free up more cash in the future (not to mention improve your credit and lower stress levels).
Worried that you can't afford to up your debt payment - even with cash back from Uncle Sam? Bankruptcy can help make debt relief a reality by offering an affordable payment plan - and in some cases, a way to discharge debt entirely. Find out for free if bankruptcy can make your journey to financial freedom finally happen - just sign up for a complimentary, no-strings-attached personal debt analysis with an Atlanta bankruptcy attorney. With the right plan, this year's tax refund can pay off for years to come.