When mail comes in, most consumers know that it is unpleasant news from the tax office. Mostly it is self-employed consumers who have to pay a tax. According to how high the tax debts are, they cannot be paid from the current budget. A loan for the tax debt often brings the solution.
Often, additional payments for taxes come from self-employed or freelance work. This clientele knows that tax debts must be paid as soon as possible. There is usually a deadline by which the debt must be paid. If the taxpayer does not respond immediately, there may be charges of tax evasion. There is also the inability to pay the tax debt immediately because the debt is too high and the current budget does not provide this amount.
In such a situation, only a loan for the tax debt can actually be the solution. An installment loan works well because it is provided by almost all banks. These installment loans usually have no purpose, which means free availability. The loan is repaid in monthly installments. The bank will adjust the installment amount to the customer’s income, as will the term.
Of course, the framework conditions for a loan for tax liabilities must be right. The bank will check the income, query the Credit Bureau and ask for a permanent position. The monthly regular income must therefore be so high that it is above the garnishment-free limit. For a single person that is 1,100 USD. If there are four people living in the household, the exemption limit is 2000 USD net.
The income should also come from a self-employed activity. But there are also banks that give a loan for tax debts to the self-employed and freelancers if they can prove a stable income with a business evaluation.
The customer can go to his house bank or ask for a loan for tax debts from the many online banks. Experience has shown that these direct banks are cheaper than local banks. If all framework conditions are met or if all conditions are met, a loan for tax debts is also approved.
The tax debt and the deferral to the tax office
The customer should know that tax debts can reduce creditworthiness, so that a loan request can be rejected. Before mail comes from the bailiff, the customer should act as early as possible. Be it through a loan for tax debts or a deferral at the tax office.
The tax office sets a deadline for paying the debt. If the tax liability is not paid by the specified date, the tax office calculates 1% per month on the tax liability. If the customer has to pay 2,000 USD in tax, if the payment deadline is not met on time, there would be another 20 USD per month. If you do not pay on time, you will first receive a reminder. Depending on where the customer lives, the tax office can face enforcement.
If the first contact is ignored by the customer, he must face default penalties and consequences. They can range from a blocked account to foreclosure. Therefore, you should contact the tax office immediately after receipt of the tax assessment. Under certain circumstances, a tax deferral can occur, which is accompanied by fixed rates.
However, the tax office will check the customer’s need for deferral upon receipt of the deferral. Only customers whose payment is threatened with immediate payment of the tax liability or if it represents a considerable hardship are subject to the deferral. However, it is reasonable to take out a loan for the tax debt.
Since the deferral, which was approved with installment payments, is only provided with 0.5% interest, the tax office has put an end to the exploitation of these low interest rates. It has often happened that debtors first paid their loans with expensive interest and had the tax authorities wait. For this reason, the deferral period was limited to six months.
If the tax office does not recognize the deferral, a loan for the tax debts must be applied for. Since the self-employed only get a loan under difficult conditions, the loan for tax debts can come into being if a co-applicant or a guarantor can be named. Employees have a regular income, the self-employed and freelancers do not. Your income situation can be seen as unstable.
A self-employed person also receives a overdraft facility from his bank. If the tax liability is within the scope of the overdraft facility, it could be used as a loan for the tax liability. However, it should be compensated for the next time you take a larger dose, because the overdraft facility is expensive. Interest rates of up to 14% are not uncommon.
In order to be predestined for a loan, the self-employed must have been able to demonstrate independence for several years. In addition, the income tax assessment and the business evaluation form the basis for a loan. The self-employed person should know what installment he can pay and how long the term should be. Those who can provide collateral, such as a property or savings, increase their credit chances.
But also a co-applicant or a guarantor. As a co-applicant, the working wife could offer credit protection. The guarantor must also demonstrate regular income.
If the customer has a bad Credit Bureau and is self-employed, he will very rarely receive a Credit Bureau-free loan. For this type of loan, you must have a regular income. If the job profile is a lawyer or a lawyer or a doctor, then the Credit Bureau-free loans can also be granted, since this professional group has a good credit rating anyway.
If you now need a larger loan amount because the tax liability is high, you must make sure that you have sufficient credit protection. Think of residual debt insurance here. Collateral must be provided so that a restricted credit rating does not affect a bad interest rate.
In general, the loan comparison should precede the loan for tax debts. The customer receives the best providers at a glance and only needs to choose. He can then apply for a loan using the credit comparison.