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Does using loans to pay tax debt make sense?

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Forum Banking Forum Loans & Leasing Does using loans to pay tax debt make sense?

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BenutzernameMoneyland User Questions
Status Member
Registriert seit1/27/17
Beiträge2142

May 29, 2017, 11:38:30 AM

Does it make sense to get a loan in order to pay off taxes I owe, taking the interest charged for tax debt and deductions for loan debt into account?

BenutzernameMoneyguru von moneyland.ch
OrtSchweiz
Status Expert
Registriert seit8/4/15
Beiträge4079

May 30, 2017, 4:39:31 PM

Hi there,

Getting a loan to pay taxes is almost never a good idea because loans are generally expensive. Using a personal loan to pay off tax debt can make sense is when the interest charged by the tax office for tax debt is higher than the interest charged by a private lender. It could also provide a solution if you want to avoid having unpaid debt listed in your debt collection register report.

If you cannot negotiate a debt repayment plan with the tax office, liquidate your assets to repay your debt or get a private loan at a low interest rate, then a personal loan may be your only option.

Make sure to compare loans carefully to find the cheapest loan available. You can do this using the interactive personal loan comparison on moneyland.ch.

Best regards from Moneyguru

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