The sooner you take action the sooner you can resolve your finance issues. Remember, if you don’t do something it will only get worse. It would be accurate to point out that many Americans don’t know what to do. Even the most basic knowledge is better than none at all.
When it comes to being indebted to credit card companies and the IRS there are two issues you should know about. Credit card companies use their influence and tactics to make you think they have an enormous amount of power over the individual. However, in comparison to the very real power of the IRS, credit card companies use much less clout.
Once your card application is approved you get a statement once a month. The companies include what you spent, how much you owe, minimum monthly payment and interest fees. You must make your minimum monthly payment by a certain date. If you miss the date you pay more interest. If you don’t pay you get reminders, letters of demand and phone calls. If you still don’t pay your account is handed to a debt collector and more pressure is applied.
Credit card companies’ tactics are hard-line when compared to the IRS’. Once your tax return is filed, the IRS provides you with a number of notices and then eases off. You probably will continue to get a statement once every year. It is not the policy of the IRS to send out a statement every month. They only do so if you have an installment agreement. They hardly ever phone to ask for payment.
A credit card company is obliged to file a lawsuit against you before getting into your bank accounts or salary. Their lawyer must notify you of a court action. The majority of cases are not taken to court. However, the IRS can levy your wages and bank accounts once they send notices of collection. They aren’t obliged to file a lawsuit, phone or send monthly statements. All that is necessary is a Final Notice of Intent to Levy.
