Three Tips For Paying Off IRS Debt
When you owe the IRS some money, you need to be sure that you do everything that you can to right this situation. This is not a creditor that you will want to have for any longer than necessary, so to prevent this from being the case, make sure that you follow a few solid tips. Start with these tips below so that you can alleviate this burden and get this debt off of your back.
#1: Reach out to the IRS and pay as much as you can
First things first, you need to acknowledge the debt before collectors start calling. This allows you to alert them so that you can see about getting more time or pushing back any due dates without penalty. There may be some deferment opportunities available on a case by case basis if you speak to someone with the IRS directly. Most importantly, make sure that you pay as much as you can before taking any further action. This will be a good show of faith that you intend to honor your debt and will allow you to make the most out of the situation, so that you can receive as much leniency as possible.
#2: Set up a payment agreement
Setting up an installment agreement is one of the most common things that people do in order to settle their IRS debt. Paying as much as you can up front gives you a greater opportunity of being approved for an installment agreement. There are a lot of methods that you can use to pay down your installment agreement, including directly by mailing a check or by using your debit card or electronic transfer through a third party service. You will have a due date every month that you'll need to honor so that you can pay on time without interest rates getting out of hand.
#3: Take out a debt consolidation loan
When your debt is beginning to get out of hand, you owe it to yourself to tackle the issue in a way that makes the most sense to you. A debt consolidation loan is a great way to go about this. There are lenders who will pay off all of your creditors, so that you are only responsible for one loan, one interest rate and one due date. This will make it much easier for you to pay back what you owe.
Use these tips in order to find IRS problem solutions.