A very small article in the London Free Press a few weeks ago caught my eye. It indicated that according to a poll conducted by BMO Nesbitt Burns, this year almost half of Canadians who receive a tax refund plan on using it to pay down credit card or other debts.
Almost half of Canadians with a tax refund. That is a lot of money being put down against debt that is owed.
Now a tax refund could come about because you are getting too much tax taken off, you are supporting a number of family members, or your income has dropped to the extent that you paid too much income tax on the total income earned over the year.
But it also indicates that a lot of people have a lot of debt that they are finding it hard to make the monthly payments, or that they need monies from somewhere other than monthly income to help pay their debt.
Are you in this situation? Do you find yourself waiting anxiously for that tax refund each year to help pay down some of your credit card balances so that the minimum payments become manageable again? Do you need to pay off a ‘don’t pay for a year’ loan that you received to buy furniture or appliances? Do you struggle with the decision to spend or not spend your tax refund?
If yes, then it may be it is time to look at the whole situation instead of just putting a band-aid on it so you can carry on the same way for a little longer.
At Hoyes, Michalos we will review your financial situation by looking at who and how much you owe to your various creditors, what assets you have and if they have any value that is in danger of being seized by the creditors, and what your income and expenses can allow you to offer to pay back to the creditors. We discuss options like bankruptcy, consumer proposals, Debt Management Plans or maybe even refinancing, although we only do bankruptcies and consumer proposals if that is the right solution for you. But the initial consultation is free and from that appointment you will be able to make a choice that suits your situation and your budget.
If you are going to use or have just used a tax refund to pay down debt and are finding that it has not helped as much as you expected, call us today at 310-PLAN or email us for that free consultation. We will help you find the solution that will help plan for a better financial future with less stress so that tax refund might be used for something more pleasant in future years.
You must log in to post a comment.