Posted on | August 12, 2011 | 2 Comments
Use Your Tax Return for 2011 To Pay Down Your Debt
Debt is on everyone’s mind these days. The national debt has been covered by every major and minor news outlet for months. They finally reached a resolution to raise the debt ceiling. How nice. If only it were so easy for individual Americans to do the same. Unfortunately it is not, and many Americans find themselves in the same situation as their country. They are living beyond their means and are facing an impending crisis. So how do average American’s deal with their own debt crisis and pay the money owed to their creditors and on their tax return 2011?
Interest rates have bottomed out and are at record lows. It is a good idea to look into transferring any debt held on high interest credit cards to a those with a lower rate. Pay close attention to transfer fees. You might also take out a home equity loan and go ahead and pay those cars off an cut them up.
Austerity measures are something that has been advocated for the nation and it can work for you to. Find places where you can sacrifice some creature comforts for long term financial viability.
By paying down your outstanding debt you reduce the amount of interest owed on outstanding balances. No one ever got out of debt paying only the minimum. Apply your 2011 tax return to this end.
4)Balance your budget
Set up a budget and stick to it. It sounds simple, but it is much harder to establish a budget and stick to it. However, once it is established it becomes habit.
- Does Bankruptcy Erase Tax Debt? (2011taxes.org)
- Do Your Own 2011 Taxes To Affect Tremendous Personal Economic Recovery (2011taxes.org)