Tax Week: Refund Anticipation Loans

So you filed your tax return and got a nice refund! It may seem like a no-brainer to keep it, but many will try to take it from you quick!

I've already seen the commercials popping up on TV about refund advances. Many commercial tax preparers love to sell these rapid refunds. Don't bite! These offers are short-term loans with outrageously high interest rates, ranging from 50% to over 500% APR. Worse yet, with electronic filing, these offers don't deliver your refund that much faster anyway. Typically, they will speed up your refund by only a week or two, depending on your situation.

According to the Center for Responsible Lending, a study found that lenders stripped over $738 million in loan fees from 8.4 million taxpayers. Don't be part of this statistic, say "No!" If you fall for these schemes, you are giving away a chunk of your refund to a money lender. Keep all of your hard-earned money and tax credits for yourself and your family. You deserve it!

Learn more about Refund Anticipation Loans in this video from the Associated Press:

Signing off...

Rob Cartwright