People who depend on credit cards or cash advances in order to make payments are worried about what their tax return may look like if the country falls off the “fiscal cliff”. With the current tax credits ready to expire at the end of the year, most households are left wondering if Congress will be able to extend some or all of the credits and if not, then what they may do next to help keep taxes low.
On average, a tax payer will get about $3000 back from their tax return. This money is often used to catch up on bills, pay down bills or saved to use for property taxes. It is common for a household to use this money to make repairs to buy new vehicles or place some of it in a savings account. Households will need to prepare themselves for a much smaller return.
What kinds of things can be done to prepare for less money coming in? For starters, trying to make sure all payments stay current will alleviate the need to catch up on bills. Of course, cutting back will need to be woven into your lifestyle at the most expensive time of year. Limit holiday spending, winter vacations may have to be cancelled or rescheduled and for those who have to heat their homes may need to lower their thermostat to limit the heating bill. Utility companies tend to be a bit harsher with collecting payments during the tax season as they know most people will be getting money back from the IRS. Since taxpayers do not have that promise to hold onto right now, it will take some focus to prepare for the worst.
Would a cash advance help me prepare for no tax return?
A short-term cash advance is not going to be of any help unless you actually have the money to pay it off on the next paycheck. These loans usually have a term of about 14 days. Without making the original due date, the balance will grow fast since these loans carry high interest. If you are planning to use a cash advance from credit cards it may be a better solutions for these hard times. They are expensive loans, but will not grow as fast over the long-term as a storefront or online cash advance would. Credit card companies charge a higher interest rate for these as compared to purchases, but the interest is charged every month rather than every two weeks as an online cash advance fast cash loan. If you start looking for extra money to help keep household payments made, be careful which ones you choose. Take some time and do your research so you choose ones which will not further destroy your financial situation.
There are some taxpayers who will have to worry about paying more in tax liabilities if the tax credits expire. Their worries will be focused on finding more money to cover the demand. Cutting back on everyday spending and holiday shopping will be the best place to start. Even though you can get an extension to file your tax return, the IRS will still expect the payment to be made on time. You may not want to depend on a cash advance online to pay the IRS since loan amounts are usually only a few hundred dollars and the payoff is quick.
Make a plan soon so you can slow the out flow of your income. Stick to your plan! If by some chance Congress makes it all work in your favor, then you will have built up a nice nest egg for your savings or at least kept yourself on track with your bills so your return can be saved for future emergencies.
