What Are My Options To Get Out Of Tax Debt?
Americans owe an estimated $530 billion in total tax debt, a simply staggering sum that seems to be increasing year-on-year as debtors struggle to deal with the fallout of the pandemic and the resulting financial crisis.
If you find yourself with mounting tax debts and no way to pay, this is the guide for you. We’ll look at some of the ways that you can manage your debts and even clear them entirely.
1. Speak with the Experts
Tax debts can get very scary very quickly. All debt is bad and can cause sleepless nights and moments of extreme stress and anxiety, but when you’re indebted to the government, those issues intensify.
It helps, therefore, to speak with an expert, someone with a cool head and sound knowledge of the industry. You can lean on them when you’re feeling overwhelmed and they’ll also answer any questions you have about the process and your options.
Health Insurance Hero is a referral service that has assumed the role of supportive advisor to thousands of consumers over the years. Its experts are always a phone call away and will connect you with a trusted partner who can help with everything from health insurance (as the name suggests) to reverse mortgages and debt.
The initial consultation is 100% free, with no obligation to buy and absolutely no pressure selling.
They will point you toward the best solutions for your specific situation, and ensure you get the help that you need.
2. Speak with the IRS
The IRS is more approachable than you might expect.
As with credit card lenders, their ultimate goal is to get as much money out of you as possible. If that means making a few allowances, including an installment plan and some minor forgiveness, then so be it.
Don’t expect your debts to be cleared, as that won’t happen, but if you’re honest and upfront, they might offer some assistance. This is also something that you can discuss with a Health Insurance Hero tax debt expert.
You’ll be surprised how common it is for consumers to complain about debts they can’t manage and obligations they can’t meet, all while holding investments and refusing to adopt a frugal lifestyle.
After you’ve paid your bills and met your basic needs (and those of your family) you need to prioritize your debts. Stop throwing money away on designer clothes, fancy hotels, and expensive restaurants.Cash some or all of your investments, and if that still doesn’t work, consider offloading some unneeded clothes, electronics, games, and anything else that has a premium price tag.
That collection of DVDs you don’t watch and obsolete PS4 games you don’t play could net you $500+ on eBay or Amazon; that budget guitar you never played could be sold for $50 on Facebook or Craigslist.
Would you rather have a collection of crap that sits and gathers dust, or the freedom of being tax debt free?
4. Consider Other Forms of Credit
Tax debt is one of the worst types of debt that you can have, so if the situation is looking pretty bleak,and no other options are available, you should consider using a personal loan or credit card to clear the debt.
It’s the last resort option, and it’s rarely the best one, but it’s a much better alternative to defaulting on your tax debt and feeling the full force of the IRS coming down on you.
If you’re not sure how to progress, call Health Insurance Hero for your free consultation and they’ll help you find a solution.
Questions? Call 1 (888) 479-1825