(Toledo, OH) I wrote last summer of my long-running Catch-22 with the Internal Revenue Service. The story involved a business I once owned and some unpaid payroll taxes owed by my corporation.
As president of the company, the IRS considered me liable for what is known as the Trust Fund Recovery Penalty, and I was on the hook for about $24,000 (over half of which were late fees and earlier penalties). We whittled the balance down to $7,500 by this summer, and we were able in July to obtain a Home Equity Loan to finally get the IRS out of our hair after seven long years.
I am not a fan of adding debt when faced with personal budget concerns, preferring instead to cut expenses and take an extra part-time job. Many people use home loans to simply pay off credit cards and start the cycle of debt accumulation all over again. This, to me, is one of the dangers faced by credit-addicted consumers who roll over their balances into a larger loan.
Still, there are times when people can use home equity loans to save themselves quite a bit of money in reduced interest charges. Consider visiting PersonalHomeLoanMortgages.com - which sponsored this post - for more information about debt consolidation.