Think tax refund loans are for you? Think again!
Do tax refund loans sound like a good deal to you? You’ve allowed someone to take a part of your hard-earned paycheck each pay period until the end of the year. In order to get it back, you’re charged as much as 2,000 percent to see any of that money again. That’s how a tax refund loan works, and you don’t want any part of it. There are much better ways to get your hands on instant cash.
Don’t fall for the tax refund loan trick. Payday loans have them beat when you need fast cash without the hassle of fees upon fees! Not only will you be able to save more money, but you can get the money you need in no time — sometimes in as little as two hours!
Think tax refund loans are for you? Think again!
For a loan fee that will vary from $30 to $90 (plus a filing fee of around $40), your tax refund loan company will give you a tax refund loan for the amount of your anticipated tax refund. That amounts to a loan of a few thousand dollars, which is the typical amount that many taxpayers receive when they are due a refund. When your actual tax refund originates within 10 days of your eligible tax refund loan application date, it is routed to the tax refund loan company to resolve your debt. What a letdown, after a long year of paying Uncle Sam!
If the average tax refund is just under $2,000, then the average APR on a tax refund loan is 222.5 percent, according to the Consumer Federation of America and the National Consumer Law Center. Depending upon the level of unscrupulousness of your tax refund loan company, APRs as high as 2,000 percent are possible.
Apply Now!Sometimes, fly-by-night tax refund loan outlets will charge even more. It pays to know what you’re getting into. Know what the terms are before you sign on the dotted line to apply for any type of loan. This includes tax refund loans, without a doubt.
With Payday Loans, you’ve got options
Don’t be a statistic! Twelve million taxpayers paid more than $900 million in tax refund loan fees last year – just so they could receive their refund money a few days faster. Some more positive options would include adjusting your tax withholdings early in the year and using the IRS’s free E-File option to expedite your refund. If you need assistance with specific tax problems you may be having, consider tax resolution/settlement. It may be possible to lessen the amount you owe, and in rare circumstance, even have your tax debt waived. At the very least, payment plans may be available.
Having done that, if you find that you still need fast cash, choose payday loans for lower cost and greater flexibility. Fees upon fees and high interest plague tax refund loans, but payday loans (and installment loans if you need more time to pay back) deal in a flat 15 to 30 percent interest rate for the duration of the two-week loan. It’s quick, it’s convenient and as much as $1,500 can go straight to your bank account in as little as a few hours.
