Should I Use a Bank Loan to Get Rid of my IRS Tax Debt?

There's no end in sight. When you're locked into an unaffordable Installment Agreement with the IRS, you can pay on tax debt for years and feel like you're never making headway.

You're paying on time, but with the interest your debt just keeps growing out of control. 




You want to know, will using a Bank Loan help you get ahead and get rid of your IRS Tax Debt?


A few things to consider regarding that:

1.)Once you are making payments on a bank loan, you are locked into that monthly payment. If your income dramatically stops, lowering those payments or stopping payments can greatly hurt your credit score.

2.)If you are in an unaffordable Installment Agreement, you are in the wrong one. A tax professional can help you find one that will easily work in your budget. If your income changes, you can change the amount you pay to the IRS WITHOUT having to ruin your credit. If you are unable to make any payments to the IRS, you can even be placed into a Currently Not Collectible status. They may put a lien on you, while in this status. However, it wouldn't even come close to the damage stopping payments on a bank loan would cause.

3.) If you already have a lien on your credit score, you may have difficulty finding a bank loan to pay off your tax debt with payments you can afford. Remember, many IRS Installment Agreements are based off of what you can afford. Bank loan payments are based on what they need from you to pay your loan off in their time frame.


Still need help? If you need help finding an Installment Agreement that will work for your life and budget, give me a call at 1-888-415-1337 or fill out the form to the right!