DEBT MANAGEMENT » Get out of Debt

Due to the state of the economy and number of Americans struggling with tax debt, the IRS is taking steps to help taxpayers avoid tax liens and reverse existing ones.

The IRS plans to raise the amount of money owed necessary to receive a tax lien, as well as making it easier to get out of one. Even collection personnel can remove tax liens upon request, to make this process even faster. Once the taxpayer makes the payments owed, the tax lien can be filed for a withdrawal. These changes apply to individuals as well as small businesses.

Changes to Current Tax Law

This post comes from the NerdWallet.com team, experts in helping users find the best low interest or rewards credit cards.

Feeling relieved after finally settling your credit card debt? Fantastic–but you’re not in the clear yet. It turns out, according to the IRS, your forgiven debt counts as income. Many taxpayers who think they’d seen the last of their debt are slapped with a 1099-C form come tax time.

Before signing your name on the dotted line of a credit card application, mortgage document or car loan agreement, wouldn’t it be great to have a warning message appear before your eyes that read “Wait! Your Credit Could Get Be Destroyed and You Could Fall Into Debt If You Sign Your Name!”?

Unfortunately, we don’t have this type of warning message to help us avoid the bad-credit cycle that is easy to get into but difficult to climb back out of. This means we have to learn how to sidestep the pitfalls of debt on our own. But how can we do this when relying on credit and loans is our way of life?

A new report from the Federal Reserve Bank of New York shows Americans now have less debt than in previous years and are taking steps toward adding to their savings. According to the report, Americans now have less mortgage, auto loan and credit card debt than in 2008 when consumer debt peaked. Even better is that they’ve saved a significant amount since the crisis.

Eliminating Debt and Saving More a Consumer Priority

Ever have that feeling that the sun, moon and stars are lining up in a way that is preventing you from good fortune? Do you ever feel that people born around the same time seem to have all the luck when it comes to personal finance?

If you like reading about horoscope signs then you know that astrologers believe that how the planets were lined up when you were born is connected to every aspect of life, including finances. Want to know how your sign fits into the equation? Let’s take a look at each zodiac sign to find out more.

For the first time since the financial crisis, people with a credit score below 680 are able to get their hands on new car loans again. Some are even obtaining loans for larger amounts than in previous years. While it’s great that individuals in need have access to reliable vehicles again, some concern has been expressed over the possibility of more loan defaults as a result of the increased leniency in borrowing standards.

Is it possible that loosening up too much result in more people taking on debt they can’t handle? Could giving people with lower credit scores access to a subprime loan cause more problems than it fixes?

This article was written by Odysseas Papadimitriou, CEO of CardHub.com, a website that helps consumers compare credit cards, store credit cards, and gift cards.

If you have bad credit, it might feel as if you’re out of options. Your credit score is so important (most lenders and even some employers use it as an evaluative factor) that having a low score could seem almost like an invisible jail cell, trapping you and preventing you from getting a new car, apartment or job.

Recent data regarding consumer debt from a Consumer Reports survey, released just before the new year, revealed some startling facts about how the holiday season affects our bills. By the end of 2010, 13.6 million people had still not paid off their holiday debt from the year prior.

As you’ll see below, while about two-thirds didn’t bother to set a holiday budget (first mistake), a large number of those who did so still went over anyway. It seems Americans have a big problem when it comes to overspending.

Worrying about how finances need to be managed is a common beginning-of-the-year concern. Many people create their New Year’s resolutions with personal finance somewhere in the picture, which is actually a great idea. The only problem is if money was their enemy in the past, the idea of making new financial decisions can feel overwhelming.

A great way to overcome this feeling is by creating a love affair with finances. By thinking about the great benefits that money provides and how paying bills can make life easier–not more difficult–along with what it is doing for you instead of to you, you could very well fall in love with your finances.

The number of bankruptcies filed by Americans topped 1.53 million last year as a result of long-term high unemployment rates and depressed home prices. Many people were unable to successfully make ends meet and therefore, sought court protection to clean their slates.

Bankruptcies Jumped 9 Percent from 2009