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Use Your Tax Refund to Get Out of Debt

If you are anticipating a tax refund this year, where are you planning on spending it? Are you looking at a new flat screen T.V., an updated wardrobe, a down payment on a new car, a vacation...the frivolity is endless. Or, maybe you have decided to hold off on your wish list and use your refund to your long term advantage, say, to invest it in a stable money market account or CD, put into savings, or pay off some debt.

Getting out of debt, especially credit card debt, should be a top priority. You might be thinking, "I have thousands of dollars worth of debt, my tax refund isn't going to make a real difference in my outstanding balances, so I might as well just spend it. That's what the government thinks I should do anyway."

While the government is encouraging tax payers to spend their refunds and on goods and services to "stimulate" the economy, wouldn't it be the wiser choice to take care of your own finances first? And there is a way to stretch your tax dollars further that could end up making a real difference in your total debt load. It's called debt settlement.

Next to bankruptcy, debt settlement is the fastest way out of debt; and is a perfectly legal way to negotiate your balances with your creditors. "It's a little-known fact that when you fall further and further behind on your payments, creditors would much rather agree to settle your debts than have you file bankruptcy and not get paid at all", says seasoned negotiator Thom Paige, author of several settlement guides and strategies.

You pay for results, or not at all

Once we and your creditor come to an agreement on the reduced amount, typically 25% to 45% of the original balance, you pay that amount in one lump sum and the creditor forgives the remainder of your debt. The creditor also reports your debt to the bureaus as settled and your account will show a paid off balance.

Because debtors need to offer a lump-sum payment, they would need some cash in reserve. How about that tax refund? Depending on how much you owe, your refund or bonus check may be enough to get one or more of your unsecured balances paid off. How nice would that be?

Now, creditors don't like to advertise debt settlement, for obvious reasons. And even though consumers can negotiate on their own, creditors tend make debt settlement a difficult and frustrating endeavor to pursue and will discourage consumers from using it. We can help. We have a team of skilled and experienced debt negotiators. Our negotiators know, and implement the most effective methods for settling debts and generally get original balances reduced by nearly half.

If you would like us to negotiate with your creditors on your behalf, here are some conditions that must be met:

  • The accounts must be in your name
  • The accounts must have a combined balance of $5000 or more, individual accounts not less than $500
  • The account must be unsecured (not secured with collateral) but we will handle remaining deficiency debt after repossession.
  • The debt cannot be: child support, taxes, bounced check, utility bill, student loan or criminal fine
  • If the debt is an IRS Tax lien, and is $10,000 or more, we can refer you to a trusted IRS negotiation expert.

Debt settlement is the fastest way out of debt and generally takes 2 to 4 months, sometimes longer and we offer payment plans extending up to 48 months. Should you decide that debt settlement is an appropriate option for you, contact us and we can start you on the road to financial recovery.