During tax season, many people look forward to refunds of money owed to them by the IRS. They anticipate using their refunds for investments, repayment of personal loans, vacations, or any number of other worthwhile things. For other people, however, tax season is a very stressful time of year. It’s a time to review finances, to account for money spent and income received for the entire year, and to figure out how much they owe to Uncle Sam.

Every year, a large number of these people fail to pay their taxes and they eventually find themselves owing a serious tax debt to the IRS. Many begin to avoid the agency, believing that their debt is too large to overcome and that they may lose all of their investments and savings when and if the IRS ever catches up with them. However, the IRS may actually be able to help a person owing a tax debt if that person is willing to communicate with the agency and explore avenues of repayment.

Installment plans are available for many

For someone who’s never been delinquent with the IRS before, an installment plan may be an option. Generally, this option is only made available to those who owe less than $25,000. However, even people who owe more $25,000 may request an installment plan. When the debt exceeds $25,000, the payment-plan approval process may be a bit more involved. For instance, the account may be assigned to a special revenue officer for the duration of the payment plan.

Offers in compromise work for some

Under some circumstances, the IRS may accept less than the total amount owed in full satisfaction of the debt. This sort of arrangement is called an offer in compromise, and it requires the taxpayer to make one lump-sum payment for the total amount agreed upon in order to satisfy the debt. The lump-sum payment may be a significant amount, but frequently it will be much less than the original amount owed.

Bankruptcy won’t make the IRS go away

Sometimes, people who are indebted to the IRS seek to avoid paying by filing for bankruptcy. However, a bankruptcy does not necessarily eliminate IRS debt. In some cases, a bankruptcy may result in the creation of a plan to pay the debt in installments over time, and it may prevent additional penalties and interest from accruing, but in most cases, IRS debt is not discharged in bankruptcy. A tax debtor should always get competent legal advice before filing bankruptcy.

IRS debt forgiveness is rare, but not impossible

In rare cases, the IRS may forgive tax debts when the amounts owed are the result of a tax return filed a certain number of years prior to filing for bankruptcy or if the taxes owed were assessed at least 240 days prior to the bankruptcy filing. A few other exceptions exist as well, such as when it is determined that an extreme hardship exists and the debt is not the result of the taxpayer attempting to evade tax laws. In some cases, a bankruptcy may make it easier to repay an IRS debt, but this is never a guarantee, and anyone owing a tax debt should obtain legal counsel before deciding whether to file a bankruptcy.

Communication is best way to resolve IRS debt

It is always best to pay taxes on time. Short of that, when an IRS debt is owed, making timely payments on an installment plan helps to avoid late penalties and other fees, and may also help a debtor to maintain a good credit standing. This is just as true for IRS debts as it is for credit-card and other debts. When a person falls behind on a tax debt, the absolute best way to resolve it is to communicate openly and clearly with the IRS to find out exactly what is owed and what repayment options are available. Communicating in this way can help people to gain control of their finances and eliminate tax debt along with enormous mental and emotional stress.

Online borrowers are not financially disadvantaged

If you don’t already know that American news media is first and foremost an entertainment medium, allow me to be the one to break it to you. Sensationalism sells better than the truth. Biased story selection and reporting slant are inescapable, particularly when you consider the influence of corporate sponsorships.

Conspiracy Theories Refuted

Since Wall Street and the American banking industry are monolithic entities, their money makes a big difference in what the public hears about the economy and the shenanigans that really led to the country’s economic collapse.

The Numbers Tell the Story

So they create smear campaigns that accuse the payday lending industry of preying upon vulnerable segments of society, such as the poor and the elderly. However, many studies of the industry have proven this claim to be false. Looking at applicant demographics for Personal Money Market from June 1, 2009 to October 20, 2009, we see a different picture. Our online payday loan customers are not disadvantaged, too young or too old. They’re at a stage in life where they have financial experience and know how to spot a good deal when options are few.

They Don’t Want You to Know that Payday Loans are Useful

Consider all customers who applied for an online payday loan on Personal Money Market (accepted or denied), here are some facts to ponder:

• Average age: 35. These are people who have some experience dealing with the financial shocks life can throw your way. As industry studies tend to show that many payday loan customers have young families, it may be safe to say that Personal Money Market’s average applicant is in a position where they need to be careful with the way they handle their finances.
• Average income: $31,690. That’s hardly poverty level, and that’s just for the individual applying. If you’re talking about 35-year-olds who are just beginning to come into their own career-wise, then you have someone who hasn’t reached their maximum earning potential yet. Perhaps their access to certain forms of credit has been limited due to a relative scarcity of liquid assets. This makes payday loans a more easily attainable option in an emergency.
• Average length of employment: 6 years. That’s an indication that the person is dependable, rather than transitory and risky. They’ve been trusted to do their job, which payday lenders definitely take into account.
• Average time at current address: 3 years. Again, this could be seen as a stability indicator. Constant relocation tends to walk hand-in-hand with fluctuating types of employment held and income levels. If a payday loan applicant is entrenched, perhaps they are less of a risk.
• Home ownership: 34 percent. While hardly a majority, this statistic is still significant. More than a third of Personal Money Market’s payday loan customers own their own home. That goes along with steady income and personal responsibility, as they have to make a monthly mortgage payment.
• Average time spent on application form: 4 minutes, 44 seconds. This tells us at least two things. First and foremost, it’s proof that it doesn’t take all that long to apply for an online payday loan. The application asks for standard information to establish a person’s employment, checking account existence, age and identity. It’s easy to complete. What this number might also tell us is that our customers aren’t rushing into the process too quickly; they’re being careful and carefully considering what the application requests.
• Percent of customers who apply for installment plans: 27.76 percent. This addresses another area where media and banking industry critics have it wrong. They claim that payday loans are a certain path toward an endless cycle of debt. Used improperly, they can cause harm. But so can Cheese Whiz. If a responsible customer (most people are responsible in this world, I find) needs to extend their repayment schedule due to unforeseen financial occurrence, installment plans are usually available.
• Percent of returning visitors out of all traffic: 4.64 percent. We hope you enjoy our site; let’s grow this number!
• Percent of applicants who are return visitors: 7.36 percent. We hope you enjoy our site; let’s grow this number! However, keep in mind that this stat also indicates that people who apply for payday loans at Personal Money Market aren’t being “roped in,” as if against their will, to that media-blustered endless cycle of debt.

The Numbers for Approved Applicants

Not everyone who applies for online payday loans at Personal Money Market receive a green light. It’s important that there are standards in place. These protect both lenders and the consumer.

• Average age: 37. Mature enough to know what financial decisions work best for them. Responsible enough to make good decisions for their families. That’s your average Personal Money Market payday loan customer in a nutshell.
• Average income: $36,000 for the applicant only. Above average in many instances, and certainly not too poor to be able to repay their payday loan debt.
• Average length of employment: 6 years. Stable.
• Average length at current address: 3 years. They’ve put down roots. Doing the right thing is important for them.
• Home ownership: 42 percent. That’s almost a 10 percent increase over the average for all applicants. It indicates responsibility and greater financial security. It goes to show that everyone can use a payday loan in a pinch.

Even Declined Applicants Show Experience, Solid Income

• Average age: 34.
• Average applicant income: $30,672.
• Average length of employment: 5 years.
• Average time at current address: 3 years.
• Home ownership: 31 percent.

Some Techie Stats For Our Online Payday Loan Applicants

You’ve heard the whole thing about the “browser wars,” right? While using Internet Explorer could be viewed as a negative in this day and age, the truth is that it has a large market share thanks to the preponderance of Windows software. Here’s a breakdown of what browsers Personal Money Market applicants use.

• Internet Explorer (all versions): 62.37 percent. It’s all about market share.
• Internet Explorer 7: 47.3 percent. Not everyone has upgraded to IE 8 yet.
• Internet Explorer 8: 32.09 percent. Here we go. But why not Firefox or Chrome?
• Internet Explorer 6: 20.57 percent. Nobody’s perfect.
• Firefox: 24.57 percent. This number seems likely to grow over time, although it may never catch IE, which has a big head start.
• Safari: 8.45 percent. Mac users take out payday loans, too.
• Chrome: 2.8 percent. This browser is relatively young, but it’s quite fast. Why not make your online payday loan application process that much faster?

Connection Speed

Personal Money Market customers have proven that they are living in the 21^st century, as at least three-quarters of applicants have access to broadband connections:

• Cable: 41.97 percent
• DSL: 23.83 percent
• T1: 9.99 percent
• Unknown: 20.82 percent. Yes, even international men and women of mystery need online payday loans.
• Dialup: 2.15 percent. I know it’s cheaper, but really? Payday loans can help with that.

So What Have We Learned Today?

Online payday loan customers at Personal Money Market do not fit the negative stereotypes the media would have you swallow hook, line and sinker. They are responsible and consider their options carefully, often because they have an entire family’s financial welfare to consider. They certainly aren’t being exploited. That’s the media’s job.