Don’t Get a Refund Anticipation Loan
Feb.04, 2009 in
Marine Corps, Money
I wrote last week that tax time is finally upon us and that getting a refund anticipation loan is a bad thing. Well it seems that I am not alone in my thinking. Patrick at Military Finance Network wrote an article on the problem with refund anticipation loans. The APR on these loans can reach as high as 99% APR which is never a good thing.
In a second article on his site Patrick writes about free tax prep for military members. As you can see there are plenty of opportunities for you to get your taxes done for free. Go visit Patrick and get your taxes done for free.
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February 4th, 2009 at 4:49 am
Thanks for the mention!
February 11th, 2009 at 2:04 pm
Great point. These types of loans feed off of people’s inability to exercise any patience whatsoever, even if it leads to them forfeiting some of their own tax return. That is money that they could have used for a night out, tucked into an annuity, or purchased whatever their hearts desired. Glad that you are getting the word out!
Jerry
November 11th, 2009 at 12:11 pm
Not only that but most of the bigger bases provide free tax filing
February 11th, 2010 at 7:48 am
Wikipedia says about it following: In the United States, taxpayers often apply for a refund anticipation loan through a paid professional tax preparation service, where a fee is typically charged for the preparation of the tax return. In the United States the Internal Revenue Service rules prohibit basing this fee on the amount of the expected refund. An additional fee is usually charged by the service for originating a bank product and establishing a short-term bank account. By law this fee must be the same on both loan and non-loan bank products, and in 2004 the average fee was $32. The bank through which the loan is made charges finance charges.