5 Things You Can Do to Protect Your Financial Future

Over the years we have helped tens of thousands of people in Alabama & Mississippi get relief from overwhelming debt. The why and how our help came to be needed is unique to each client. However, there are a few things we found to be common in many cases. If you find that you are caught in one or more of these situations do not hesitate to call our skilled debt relief attorneys for an absolutely free and frank conversation about ending your debt.

Avoiding filing your taxes

Even if you can’t pay your income taxes, you should always file your tax return. That may sound crazy like you’re just asking Uncle Sam to come after you, but it’s the best approach. Why? If you don’t file a tax return, the IRS files one for you, and they don’t do a great job of it. They look at the income that’s reported to them and give you just the standard deduction. This is called a replacement return and will result in the highest possible income tax assessment for your income scenario. Always file your returns even if you can’t pay so that the clock on the statute of limitations on collections starts ticking

Pulling from your retirement to pay bills

Most consumers do not save enough for their retirement and underestimate the amount of money they will need to live on in their golden years. Plus, as Americans, we’re staying in debt longer as we age which means our retirement funds aren’t just used for living expenses, but to service debt and pay interest. Taking funds out of your retirement account to pay off debt is not wise – don’t do it. Also, try not to borrow against those funds. And be sure to actively invest for your future retirement in either 401(k), IRA, Roth IRA, or any other investment vehicle with every payroll.

Carrying balances on your credit cards

Ideally, you should never swipe your credit card for something you couldn’t afford to buy with cash. If you buy an item with a credit card and don’t pay it off in full that month, it’s like you’re taking out a high-interest loan. That’s not a wise way to buy a TV, outfit, vacation, or computer that you want – you end up paying far more in the long run. Better to save up the money and buy when you can afford it. Using credit cards minimally and then paying them off in full each month will result in the best outcome for your credit score. Credit spending is one of the worst habits you can engage in and can wreck your finances.

Taking cash advances off your credit cards

Ordinary interest on credit cards is bad enough, but when you take a cash advance, your card issuer will usually charge a much higher interest rate on that amount. Card issuers will also often send “convenience” checks which you can write out just like bank checks. You can write it to yourself and deposit to your own bank account or pay someone else for something or to pay off/down personal debt, or really for any reason. Convenience checks are also a cash advance and will result in higher interest charges. Shred these checks so you won’t be tempted and never take a cash advance.

Ignoring creditors

You should never ignore calls or letters from a creditor or debt collector if you’re behind on your debt. However, you have to take things they say with a grain of salt. You should educate yourself on what creditors and debt collectors can and cannot do. Check out the Consumer Financial Protection Bureau’s website and browse for information on debt collection. If you get served with notice of a lawsuit for a past-due debt, that can’t be ignored, and you must act. If a collector tells you if you don’t pay, they’ll have you arrested, that’s a lie and can be disregarded. But you have to know the difference.

The Guidance You Need

The attorneys at the Bond & Botes Law Offices have the experience and provide you with the guidance you need to get out of any of the traps mentioned above. Whether you have large medical debts, drop in income or job loss, or are just over-extended due to inflation and rising interest rates, call 1-877-581-3396 today. We provide an absolutely free consultation and will go through all your options for debt relief.