Where Can You Borrow Money on Your Tax Return - 3 Reasons to Avoid Tax Refund Loans

If the recession has hit you hard and you are anxiouslyloan could last months or longer and you are now
awaiting your tax refund, you are not alone. Manyresponsible for paying back the entire loan at a high
people are asking: "When will I receive my IRSinterest rate. This can turn out to be very expensive.
refund?" And "where can you borrow money on yourA little planning a head can keep you from being
tax return?" But even if you need the money righttempted to look for where can you borrow money on
away, it might not be worth the price. You may beyour tax return. There are specific things you can do
better off in the long run waiting a couple extra weeks.to keep yourself from anxiously asking, "When will I
Short term loans, also called "instant refund loans," orreceive my IRS refund" and being tempted to risk the
"refund anticipation loans," cost Americans over $900high fees and interest just to get your money a few
million dollars in fees last year. More than 12 million of usdays earlier.
were willing to pay outrageously high fees and3 Actions To Take For Next Year
percentage rates just to get our refund money a few1. Reduce your tax withholding for next year.
days sooner.2. File as soon as you receive your W-2, using
3 Reasons Not To Even Ask Where Can Youelectronic filing, and direct deposit.
Borrow Money On Your Tax Return3. Change your financial circumstances.
1. Large Fees: With initial loan fees, tax prep fees, andPerhaps this could be your year to invest in yourself
electronic filing fees your average $2000 refund isand your financial future by earning extra money in
being reduced by as much as $300 or more just toyour own online business. Many online businesses have
start the filing and loan process. Many who anxiouslya low start up cost. Make sure you learn how to
ask, "When will I receive my IRS refund" and look for amarket that business so it makes money instead of
tax refund loan are setting themselves up to pay out inloses money. To really make it succeed you should
fees.consider enrolling in an online marketing and mentoring
2. Outrageous APR: To be able to receive the loan onprogram. Taking small steps to change your
your money, you will have to pay an annualcircumstances can go along way to making a big
percentage rate of anywhere from 222.5% to morechange in your financial future. Starting an online
than 2000%. Not many of us would accept thosebusiness on the side of your regular job can potentially
terms on a loan at any other time. This kind of interestearn enough income to eliminate the need to ask
is astronomical to say the least. Yet many of us are"where can you borrow money on your tax return"
willing to accept it when the loan is short term.and the anxiety felt in wondering "when will I receive
3. IRS Could Hold Up Your Refund: If the IRS has amy IRS refund". Being more in control of your finances
problem, for any reason, with your tax return, they canwill keep you from feeling desperate enough to pay
hold up your refund. If this happens your short-termsuch high rates on your own money for a 10-day loan.