Payday loan lenders may have an increase in business if taxpayers don't start preparing for possible tax hikes. The tax relief plan that President Bush put into action will expire next year and if Congress does not get something in action by the end of this year, people can be looking at their taxes going back up.
President Obama had his extension plan pushed forward by the Democratic run senate as they signed an extension for the middle class only. This would keep their rates low but not save the wealthier taxpayers. It is doubtful that the Republican House will pass this extension without including all taxpayers. The argument behind this action is that it is an election ploy by the President and it will backfire unless revisions are made. The battle of the parties will end up hurting the people of America.
The struggle for the people will be to prepare ahead of time for larger taxes on their income. Many people are already facing month to month problems with what they have now. Paying higher taxes will bring in smaller tax returns or larger liabilities. Those who counted on returns to catch up on bills or pay off other expenses will have to start looking for new ways to make ends meet. Those who have to payout each year will want to start saving an extra amount to be put aside to cover the increase. Congress will want to get something passed by the end of the year in order to prevent the hike in taxes.
The lower middle class are already a big part of the payday loan lender customer count. Many of these hard working people are struggling to make ends meet as it is. Foreclosures and piles of debt are burdening many. Others are barely staying afloat by building credit card and payday loan debt. Those who are still making ends meet will be working extra hard to stay that way if the tax relief signed by President Bush is not extended. If these hard working Americans do not start preparing now, there could possibly be a boom within the payday loan industry.
What are some things that the average taxpayer can do to start preparing for a possible tax hike?
*Start building your credit score in case you are in need of a bank loan.
*Pay down on credit card debt to lower the debt to income ratio, making bank loans or new credit cards more readily obtainable.
*Start a savings account and put as much as you can away in case you end up with a tax liability.
*Talk with a financial planner or Certified Public Accountant to see if your finances will be affected in any other way. These professionals may offer a more involved plan for you to plan for the worse.
A responsible and trustworthy payday loan lender is looking out for its customers wanting them to be financially secure. Short-term loans are to help in emergency times, not to be used as a way of life. Taxes are a high priority bill and planning for possible spiked costs, is a financially sound decision.