Can I use a debt consolidation loan to help me with my tax debt?
<p data-sp-element=”content”>Tax debt is one of the worst types of debt to have to deal with. Unlike credit cards or auto loans, there is really no way to get rid of this debt through a bankruptcy or by giving back the item that you took out a loan for. Tax debt doesn’t “fall off” a credit report, and if you don’t try to pay it back, it’s one of the few types of debt that you can be sent to jail for not paying.That’s why a person who owes back taxes has to make paying them off a top priority. Fortunately, a debt consolidation loan can help. These loans make it possible to turn your tax debt into a loan that can be paid off in small, manageable payments.As anyone who has dealt with the IRS or their local government can tell you, it’s next to impossible to work with these agencies. Since they are only rated on how much money they bring in, they rarely want to negotiate with anyone, much less work out a payment plan. Because of this, it’s possible to be ordered to pay thousands of dollars or go to jail.If you’ve found yourself in a similar situation, a debt consolidation loan could help you. These loans will immediately pay the IRS the total amount that you owe. That means that as soon as the loan is approved, you no longer have to worry about going to jail, having your bank accounts frozen, or even dealing with the harassing phone calls from the government. Then, instead of selling assets or taking out high interest loans, you have one, low interest loan that you pay off over the course of months or years. You have a choice in your loan terms, payment amount, and interest rate.You can pay off your tax debt on your own terms and not worry about the consequences of owing thousands of dollars to the government. You’ll also be able to stop fees and penalties from accumulating on the money. You’ll be out of trouble, and in a short time, out of debt.