Over the years, we’ve helped tens of thousands of people in Alabama and Mississippi get relief from their crippling debt. Why and how our help was needed is unique to each client. However, there are a few things that we found common in many cases. If you find yourself caught up in one or more of these situations, please call our qualified debt relief lawyers for an absolutely free and candid conversation about ending your debt.
Avoid filing your taxes
Even if you can’t pay your income taxes, you still need to file your tax return. It might sound crazy like you’re just asking Uncle Sam to come after you, but that’s the best approach. Why? If you don’t file a tax return, the IRS files one for you, and they don’t do it very well. They look at the income reported to them and only give you the standard deduction. This is called an alternative return and will result in the highest possible income tax assessment for your income scenario. Always file your returns even if you can’t pay so the statute of limitations on collections starts to run
Drawing from your retirement to pay your bills
Most consumers don’t save enough for retirement and underestimate the amount of money they’ll need to live into their golden years. Plus, as Americans, we stay in debt longer as we get older, which means our retirement funds aren’t just used for living expenses, but for servicing debt and paying bills. interests. It’s not wise to withdraw funds from your retirement account to pay off your debts – don’t do it. Also, try not to borrow against these funds. And be sure to actively invest for your future retirement in 401(k), IRA, Roth IRA or other investment vehicle with every paycheck.
Carry balances on your credit cards
Ideally, you should never swipe your credit card for something you couldn’t afford to buy with cash. If you buy an item with a credit card and don’t pay it off in full that month, it’s like taking out a high-interest loan. It’s not a good way to buy a TV, an outfit, a vacation or a computer – you end up paying a lot more in the long run. Better to save money and buy when you can afford it. Using credit cards minimally and then paying them off in full each month will give you the best results for your credit score. Credit spending is one of the worst habits you can get into and can ruin your finances.
Withdraw cash advances from your credit cards
Regular credit card interest is bad enough, but when you take a cash advance, your card issuer will usually charge a much higher interest rate on that amount. Card issuers will also often send out “convenience” checks that you can write out like bank checks. You can write it to yourself and deposit it in your own bank account, pay someone else for something, pay off a personal debt, or really any reason. Convenience checks are also a cash advance and will incur higher interest charges. Shred those checks so you don’t get tempted and never accept a cash advance.
Ignore Creditors
You should never ignore calls or letters from a creditor or debt collector if you are behind on your debt. However, you have to take the things they say with a grain of salt. You should educate yourself on what creditors and debt collectors can and cannot do. Visit the Consumer Financial Protection Bureau website and search for information on debt collection.
The advice you need
Bond & Botes lawyers have the experience and will provide you with the advice you need to get out of any of the pitfalls mentioned above. Let us solve your financial problems. There’s no obligation, and that means there’s no downside to gathering the information you need to make good decisions about how to break the cycle of debt stress and go forward. We can answer all of your questions regarding Chapter 7 bankruptcy, Chapter 13 bankruptcy, stopping a foreclosure or wage garnishment, avoiding liens, stopping a lawsuit, l medical debt, personal loans, payday loans, credit card debt, etc. We can relieve your stress! We want to help you and we can help you!
Bond, Botes, Sykstus, Tanner & McNutt, PC
The Web: www.bondnbotes.com
Facebook: facebook.com/Bond-Botes-Sykstus-Tanner-McNutt-PC-203986783117475/
102 South Court Street, Suite 314, Florence, AL 35630
Telephone: 256-760-1010 • Fax: 256-760-1023
Opening hours: Monday to Friday • 8:00 a.m. to 5:00 p.m.
No representation is made that the quality of legal services to be provided is superior to the quality of legal services to be provided by other attorneys.
