Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Credit Reports and Paying Overdue Taxes.

It is top priority to pay all your overdue taxes as soon as possible due to the compounding problems that occur and the damages that they can create for your FICO® credit score and overall credit rating.

With penalties and interest on overdue taxes it doesn’t take long for the total to mount up where you will be paying more than the original amount outstanding.

Federal taxes are one of your most important debts to clear as there is no one quite as ruthless at recovering debt than the IRS. They have more powers than anyone else to recover debt. You will not win this one, and your credit rating attached to your FICO® credit score on your credit report will nosedive if not paid in a timely manner.

The IRS can take assets to cover the debt and that even includes your home so you don’t want to be messing with the IRS.

If you know that you won’t be able to pay your tax when it falls due, then you will need to look at all alternatives and that might even include the necessity to use your credit card to pay your account simply because that will be an easier debt to manage than the IRS and the interest and penalties that they will impose if not paid on time.

If you have enough equity in your home, then that is another solution, because the interest you will pay on your home mortgage will be a lot less that the IRS interest for late payments.

You will probably be reluctant to use your house to borrow the money, and rightly so; however, in the case of federal taxes you could stand to lose your house if you didn’t pay anyway.

If you have already incurred penalties and interest for outstanding taxes then it is possible to come to an arrangement with the IRS where they will reduce some of these charges provided you can offer them some reasonable explanation as to why this happened. An example of this would be an illness that stopped you from working and earning enough money to make payments.

Often you can arrange a payment plan with the IRS to pay off your debt and if they agree, then you would use your budget to work out how much you can reasonably afford to pay without getting in difficulty and defaulting.

Once you have a payment plan sorted out, you won’t want to miss any payments under any circumstances. Your FICO® credit score and credit report, along with your credit rating will at least be maintained at the highest level possible.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

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Credit Repair + Debt Elimination = 800+ FICO® Score Credit Report

Managing Your Credit and Child Support.

Child support is a high priority debt that you must pay no matter how difficult your financial position might appear to be.

There are a number of reasons why you need to make child support payments your top priority. Asside from the fact that your children shouldn’t have to suffer for your financial dilemma and the necessity for you to provide them with the necessary support to ensure their welfare is looked after, you also need to be aware of the consequences of not paying child support.

Any child support court order that was written or modified after the 31st of December 1993 will automatically be deducted from your wages if you are employed. If you are self-employed or unemployed you are still legally required to make the necessary payments.

Your failure to do so can result in various different actions being taken against you including debt collectors coming to retrieve the necessary funds, getting issued with a court order to recover the outstanding money or in some circumstances you can be put in jail until you make your past due child support payments.

Your credit rating will also be damaged when the debt collectors and the courts become involved. Your FICO® credit score associated with your credit report will begin to plummet.

You can see now why Child support is a high priority debt that needs to be paid before many other debts. Do whatever it takes to stay out of this debt and credit trap.

There are State Departments that have wide reaching powers to collect the past due money. Don’t test them; they will win everytime.

If you can’t pay this money then contact them as soon as possible and work out an arrangement where you can pay off the outstanding amount by installments and then include this into your budget and prioritize it accordingly.

There are so many other areas that are affected by non-payment of child support that can impact on your ability to clear the rest of your debt including the sale of your assets to cover the cost and liens on your assets to stop you borrowing against them to clear debt.

Once your past due amount exceeds $1000, the debt will be reported to the credit reporting agencies and anyone who accesses your credit reports such as creditors, insurance companies, landlords and so on will see that you have fallen behind in your payments and this certainly doesn’t help your cause when trying to sort out your debt problems.

Make it your priority to insure that your child support payments remain current, and your life will be less complicated. By keeping this debr in check will help insure that your credit rating and your FICO® credit score on your credit report will also be maintained at the highest level possible.

Dr. Robert Miller, PHD
Investigations Analyst
www.TheCreditRobbers.com

Contact Us: Send a FormMail Message

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