Michael D. Hart, P.C.

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Virginia residents and others spend tax refunds like this

| Dec 20, 2019 | Uncategorized |

You might be one of many Virginia residents who are eagerly awaiting the new year. Perhaps, you have already written a list of goals you’d like to aim for to improve your health, find a life partner or save more money. Maybe you’re among those who are most excited about a new year because it means you’ll soon be getting a tax refund. Do you start in December to decide how you’ll spend the money?

The topic of income tax often incites debate. Many people believe it is unconstitutional. However, as it currently remains part of the federal government process, every year, around this time, people start trying to figure out how they’ll spend their refunds. Those facing serious financial crisis may want to consider using tax refund money to pay off debt.

Some use tax money to jump-start financial plans

If your financial train has gotten off track in 2019, it’s not surprising you might be seeking debt relief options at this time. In the past, many people in Virginia and elsewhere have been able to get things back on track by using tax refund money to pay off debts. Some people try to gain stronger financial footing by using refund monies to make a few strategic investments.

Consumer debt is at an all-time high

Do you worry about maxing out your credit cards? Perhaps, you have a family member or close friend who has already done so. You want to avoid a similar fate but find it helpful to use credit when you’re faced with expenses you’re unprepared to meet. For instance, many people pay medical bills with their credit cards.

At this time, approximately one in three people are worried about credit card debt. This is why many of them will choose to use their tax refunds to pay off their balances. 

What if your tax refund is non-existent or not enough?

If you’re not expecting a tax refund or you are but don’t think it will be enough to satisfy your debts, you might want to learn more about other debt relief options, such as bankruptcy. While the term definitely sparks a negative stigma, many people consider it a valuable financial tool that can help overcome an immediate financial crisis and also help lay the groundwork for restored financial stability in the future.

Speaking to someone who is well-versed in financial issues, as well as state bankruptcy laws, is a logical first step to take if you want to learn more about the process and seek help to explore whatever various options for debt relief might be available to you.