If you had forgiven credit card debt during the past three years and paid taxes on that additional income, you might be eligible for a tax refund — and not even know it.
How? A national taxpayer advocacy agency says many people who qualify for an exemption to avoid paying taxes on forgiven credit card debt don’t take advantage of it. The IRS tax forms and publications are so confusing that many people — whose lives may be in financial upheaval because of debt — just give up and pay the taxes.
“Unfortunately, it’s complicated and daunting for people to get through,” says Annette Nellen, a volunteer at the American Institute of Certified Public Accountants.
Tax experts say it’s not too late for some affected debtors to fix the oversight.
Consumers beware, foreclosure fraud is rampant in todays post financial meltdown era. Unquestionably, the worst of the carnage left after the financial meltdown has been the millions of foreclosures that continue to plague the housing market.
There is expectation across the board that interest rates will be coming down a number of times during 2012 the first rate cut is expected in February.
As home loan rates begin to ease, overextended borrowers will be able to breathe a sigh of relief. Rates will be reduced not only on home loans but also car loans, personal loans and credit cardsmaking it easier for families to stay afloat.
While 2011 had brought 2 interest rate reductions only towards the end of the year it was enough to make a difference to many families carrying significant levels of debts.
Interest rates on new credit card offers fell this week, according to the CreditCards.com Weekly Credit Card Rate Report, due to a sharp APR drop for the priciest card in our survey.
The average annual percentage rate (APR) dipped to 14.95 percent — its lowest level since early September. That’s down more than a quarter-point from the record high of 15.22 percent, set in mid-December.
First Premier — a bank that issues cards targeting so-called subprime consumers, those with below-average or thin credit — sent the national average tumbling by tweaking the APR offered for its Gold MasterCard from 49.90 percent to 36 percent. Even with the decline, it’s still the highest APR of any credit card CreditCards.com tracks.
With personal savings playing an increasingly larger role in people’s financial lives, understanding how to maximize the benefits of a savings account is important if you want to get the most from them.
Today, people are faced with numerous choices when it comes to their savings, and with the availability of online banking that can put your savings account at your fingertips, the need for an effective savings strategy is greater than ever.
Choosing the Right Place to Save
There has never been a shortage of finacial institutions offering savings accounts, and with the advent of internet-based direct savings institutions, the number has grown exponentially.
While having choices is always a good thing, too many can lead to confusion and even despair when you need to find the right place for your savings The key is to begin your search with your own set of criteria and then narrow the choices based on their ability to address your specific needs.
Account Access: For most people, access is their primary concern, being able to get in touch with their savings and a person who can address their needs. In fact, the majority of people want quick access to their savings in case of an emergency or unforeseen expenses.
In the past, that meant having an account with an institution that had a branch within a short drive. Studies have shown, however, that with the availability of online banking and savings, most people rarely visit their local branch, preferring instead to bank from the comfort of their home or wherever their smartphone takes them.
Savings Options: Most savings institutions offer a range of savings products designed to meet various savings needs.
Home Loan arrears are expected to stay at the presently high levels in the immediate future.
According to Fitch Ratings, home owners who are 30 or more days behind on their mortgage payments will will remain at approximately 1.75 per cent for the rest of the year.
This forecast is based on recent estimates issued by the RBA that rates are likely to remain at current levels for the next few months.
In the minutes of its July meeting, the Reserve Bank warned that mortgage arrears rates had gone up among home buyers who had purchased their homes during the property price peak periods, particularly in Western Australia and Queensland.
RBA believes that home loan arrears are the fault of lenders who did not follow sufficiently strict lending guidelines.
Fitch associate director James Zanesi said higher interest rates had put home buyers in difficulty.
Of course the recent spate of natural disasters has had an unexpected financial impact on many Queensland and Victorian families.
“ While Fitch does not believe that natural disasters such as the December/January floods have been the main factor in the rise in delinquency rates in Queensland, the ratings agency cannot exclude that natural disasters might have indirectly contributed in terms of regional unemployment and increasing cost of living,” he said.