Tax Season May Induce More Car Title Loan Applications
Car title loans are most often associated with lower income homes. With the potential tax problems this next tax season could bring to the middle class, those associations may be changing.
Congress has till the end of the year to keep the Bush tax breaks from expiring. There is also the AMT or alternative minimum tax, which could come back into play this next tax season. This tax is a set figure which must be paid if the exemption is not extended. Originally, this tax was created to make sure those in high tax brackets paid a certain amount each year. Higher income tax payers were using deductions and tax credits to relieve their tax liabilities. If your tax liability is smaller than the AMT amount, a tax payer will be required to pay the difference. If your liability is over the AMT amount then you will not have to pay anything additional. Congress needs to make a continuance for the AMT before January (tax season) begins.
The loss of tax credits could bring car title loan options further up the tax bracket scale. Many people received around $3000 in tax returns. This money is often spent on property tax or paying off bills. Utility companies ramp up their shut-off notices knowing that this is the season that people may have that extra money to get paid. How are people going to be getting the money to make these mandatory payments? Where else will they get money for vacations or to place in savings for a later date? What happens when the later date comes and there is nothing there to fall back on?
Car title loan lenders know that there may be an influx of people looking for loans when returns are not what they are accustomed to getting. Starting a savings account would be a great way to prevent needing a title loan. Cutting back during the holidays may also bring some relief. There are many middle class families who spend more money during this time anticipating their tax return to pay off the bills. Knowledge is power, especially when it is associated with financial matters.
Families, who normally get through the tax season just find, will want to keep tabs on tax related news for the next few months. Now that the Presidential elections is over, Congress will get back to work and will hopefully work at keeping tax credits and extending exemptions for the alternative minimum tax.
Fast money options are available to get through some crunched times, but they need to be used wisely. Car title loans are fast money at a high price if not paid off on the original due date.If you are able to plan in ahead in order to keep yourself from having to use a short-term loan.
If there are no other options and money is needed quickly, a title loan is one option. Check with family or friends or see how much may fit on credit cards before taking out a short term secured loan. It is a last resort option for a financial crunch.
Congress has till the end of the year to keep the Bush tax breaks from expiring. There is also the AMT or alternative minimum tax, which could come back into play this next tax season. This tax is a set figure which must be paid if the exemption is not extended. Originally, this tax was created to make sure those in high tax brackets paid a certain amount each year. Higher income tax payers were using deductions and tax credits to relieve their tax liabilities. If your tax liability is smaller than the AMT amount, a tax payer will be required to pay the difference. If your liability is over the AMT amount then you will not have to pay anything additional. Congress needs to make a continuance for the AMT before January (tax season) begins.
The loss of tax credits could bring car title loan options further up the tax bracket scale. Many people received around $3000 in tax returns. This money is often spent on property tax or paying off bills. Utility companies ramp up their shut-off notices knowing that this is the season that people may have that extra money to get paid. How are people going to be getting the money to make these mandatory payments? Where else will they get money for vacations or to place in savings for a later date? What happens when the later date comes and there is nothing there to fall back on?
Car title loan lenders know that there may be an influx of people looking for loans when returns are not what they are accustomed to getting. Starting a savings account would be a great way to prevent needing a title loan. Cutting back during the holidays may also bring some relief. There are many middle class families who spend more money during this time anticipating their tax return to pay off the bills. Knowledge is power, especially when it is associated with financial matters.
Families, who normally get through the tax season just find, will want to keep tabs on tax related news for the next few months. Now that the Presidential elections is over, Congress will get back to work and will hopefully work at keeping tax credits and extending exemptions for the alternative minimum tax.
Fast money options are available to get through some crunched times, but they need to be used wisely. Car title loans are fast money at a high price if not paid off on the original due date.If you are able to plan in ahead in order to keep yourself from having to use a short-term loan.
If there are no other options and money is needed quickly, a title loan is one option. Check with family or friends or see how much may fit on credit cards before taking out a short term secured loan. It is a last resort option for a financial crunch.
