National Student Loan and Credit Report Debt Attorney

Should You Use Tax Refund to Get Out of Debt?

Should You Use Tax Refund to Get Out of Debt?
Rate this post

According to a new poll by the American Consumer Credit Counseling group, most Americans will use this year’s tax refund to pay down credit card debt.

This can be a smart financial decision, especially if your tax refund covers all of your credit card debt, giving you a fresh start. However, if, even after you apply your refund to your credit card debt, you still owe more than you did a year ago or you can still only afford the minimum payments, you would be wise to consider alternatives uses for your refund, including using it to jump-start a debt settlement plan.  A qualified debt settlement attorney will negotiate for a large reduction in your debts, giving you a fresh start without paying the entire amount claimed due. In essence, a tax refund could be used to pay down a portion of your debt, but not solve the underlying debt problem, or it could be used as part of a plan to settle your debts for significantly less than your creditors claim you owe.


Should You Use Tax Refund to Get Out of Debt? was last modified: November 1st, 2014 by Kevin Fallon McCarthy
The following two tabs change content below.
Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.
Call 855-976-5777 or Chat Now
  • How much do you owe?
    Select your approximate debt.
    Less debt
    More debt
  • The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.