All Americans are well aware of what debt is and how it can negatively impact our lives. While the amounts and types may differ, when it comes to resolving debt issues, many opportunities are similar for everyone. However, there are special services and consideration for members who have served in our Armed Forces.
According to certain studies, members of the military often carry more personal debt than civilians, with at least a quarter of military personnel facing credit card debt of $10,000 or greater. Other types of debt most common among military veterans include auto loans, education loans, and mortgages. Fortunately, like civilians, service members have options when it comes to tax debt relief.
Debt consolidation is one of the more popular choices because it can combine all debt into one payment at a lower interest rate. Often it’s hard to make even minimum payments because of interest rates that are sky high. Mix that with potential late fees, and a minimum monthly payment may not even begin to cover the actual accrued debt. Military veterans also have the option of taking a consolidated loan from the VA, which offers reduced interest rates and more appealing lending terms to help pay down debt.
Another option is debt settlement. Some credit card companies and loan providers may consider a debt settlement amount that is lower than the overall total due in order to have it paid in a timelier manner. Calling on the help of an industry professional and the options they offer like Community Tax Services can help ease the burden of dealing with the IRS or other collecting parties on your own.
A debt relief company can help you negotiate lower amounts due on your debt, so that you can make payments more aligned with your current financial situation to allow you to achieve a clean slate. When looking into a debt settlement option, take a look at your income and be honest with how much per month you’d be able to pay. This will help when you discuss possible payment plans with a debt relief specialist.
When it comes to other tax services for military veterans, there are programs provided by the IRS to help assist with preparing and filing tax returns. The Volunteer Income Tax Assistance Program gives veterans who make less than $53,000 or suffer from a disability an opportunity to receive tax support from IRS-certified volunteers to make sure tax forms are filled accurately and on time. This can help with late fees, penalties, or audits.
These tax tips are helpful for military veterans who may be overwhelmed or just in need of a little help when it comes to filing tax returns or handling tax debt. There are solutions available for those who are willing to work towards the goal of paying off any money owed. Make sure to research other opportunities within your own city that may focus on helping members of our military during tax time.
Have you used a tax debt relief service? How did they help you? Would you recommend them to others?
