Ready or not, April 15th is coming! With a little advance planning, you can breeze through tax season and breathe easy. Here are some tips to help the process go smoothly:
1. Get organized. Gather all your relevant paperwork from 2014, including W-2’s, receipts for deductible expenses, and medical bills. If these papers are scattered all over the place, you might want to start a filing system for 2015!
2. Get your IRA funded. Remember, you have until April 15th to fund your 2014 IRA. Banks and Credit Union offers safe, secure Traditional, Roth and Coverdell (Education) Accounts.
3. Get some help if necessary. A professional tax preparer can help make sure your return is accurate, and you’re getting all the deductions you’re entitled to.
4. Get a tax loan from all of your credit unions, banks, and other sources for 1099 income. Uncle Sam doesn’t like to wait for his money, so see us for a low-cost loan if you need to.
5. Get your refund by Direct Deposit! Just complete the Direct Deposit line on your tax form 1040, 1040A or 1040EZ, and include your routing number: . You’ll get your refund up to 3 weeks sooner!
Stay tuned to AlcaneFCU.org for all of your lending and consumer financial tips for 2015, we are working hard to help you save money this year!!
If you want to get ahead financially in 2015, debt must be reduced at all costs. This is especially true of credit card debt, which is one of the most expensive types of debt you can have outside of having outstanding payday loans due. Even when you compare student loan debt and mortgages, credit card debt always has higher interest rates. In a nation where the average household credit card debt hovers around $15,000 it is no wonder that so many people are struggling financially and not achieving their savings goals.
First off work on paying down any credit card debt you have. If you have multiple credit cards and have debt with more than one of them, choose the card with the highest interest rate and highest balance first to pay off. Many consumers wrongfully feel paying off the lowest balance or lowest interest card first is putting them ahead, but they do not understand the math and chase the illusion of progress while ignoring the money they lost by not paying off the highest rate debt first. Always pay off the debts with the highest annual percentage rate first. The longer it takes you to repay money owed the more you end up paying, here are some examples:
Amount borrowed on credit: $5600.00, interest rate @ 15% taking till January 2016 to pay it off at $490.00 per month and the interest would have cost you a total of $502.00
Amount borrowed on credit: $5600.00, interest rate @ 15% it would take till January 2017 to pay it off at $262.00 per month, the interest would have cost you a total of $955.00!
The rates get worse with lower payments, take for example borrowing the same $5600.00 and only paying $100.00 per month with an 18% interest rate, it would take you over 9 years to pay off and the interest alone would cost you over $6000.00
A great tip is to find a zero interest charge card, there are numerous offers online with introductory rates until 2016, which can help you reduce your interest expenses and save money every month.
If you want to reduce your debts in 2015 you need to examine your credit card use as well. One in three Americans live off of credit card debt, meaning they make more purchases per month on credit than they can afford to pay off. When you borrow more than you can pay off per month the debt grows quickly, and adds further to your cost of borrowing due to the high interest rate and failure to pay off the principle, the debt rolling over month to month with accumulated interest. You should avoid pleasure spending on your credit cards if you have been having trouble paying off the balance every month or carry a past due revolving balance. Only use your credit card for emergencies until you have paid down your credit card debt to only having a balance of 30% of your total credit, meaning that if you have $10,000 available in credit but an outstanding debt of say $8000.00 you should avoid using your credit card until the debt has been paid down to around $3000.00 Make a budget and stick to it. Allocate enough in your budget to pay those debts down as soon as possible. Once your credit card debts and loans have been reduced try and focus on building up your savings account so that you can get ahead financially.
Searching for a personal or installment loan in Texas? visit http://alcanfcu.org for the best options on Texas loans from $300 to $10,000 or more online!