If there is one thing that everyone across the world unanimously strives for is Peace of Mind. Whatever we do in our lives, work, start a business, start a family, ultimately it all boils down to one question: Are we really happy or can we really say our lives are stress free? Well, the unfortunate truth for many of us today is that the answer is a sad NO.
One of the biggest reasons for that unfortunate truth is tax debts. Today more and more people are getting into the tax debt trap which has led to the local taxation offices breathing down their necks causing severe panic and stress. So much so that the tax authorities are resorting to new measures and recruiting more resources for recouping these debts. Some of these measures include making their telephone staff ring you after hours or recruiting external debt collection companies to knock on your door. Enough to make you lose sleep.
Let’s take a simple example of Paul. A family man, Paul owns a small business selling wholesale tractor equipment. He runs the business out of a small office he rents. Paul’s business was growing at a fast pace. Excited about the future possibilities he planned his expansion and growth both professionally and personally. But unfortunately in all the excitement he made some crucial mistakes. Primary mistake was not taking his tax responsibilities too seriously and as a result he failed to pay his ongoing tax dues. This meant that soon he had plenty of accrued tax debts thus attracting the interest of the taxation office to recover these debts. Needless to say with the tax authorities after him, Paul lost his once taken for granted peace of mind.
Paul tried numerous banks to refinance his mortgage to pay his tax debt, but none would lend him the money as his situation did not fit with their lending criteria. Paul needed to borrow more than 80% of the value of his home - in other words, the loan was above an 80% Loan to Value Ratio (LVR) - so the Lender's Mortgage Insurers also had an issue.
So what was the solution to Paul’s problems? The solution here was a loan specifically designed to Refinance Tax Debts. Of course no one expects you to approach refinancing tax debts on your own. There are now specialists in this field who specializes in supporting the needs of small businesses who have associations with a range of lenders, providing loan products that are designed exactly with the purpose of refinancing tax debts.
Paul approached one such specialist refinancing company. With Paul’s permission, the specialists approached a number of lenders to look at his situation. The final outcome is that Paul increased his existing $280,000 mortgage up to $350,000 to pay out his tax debt. This was a 90% LVR against his properties, valued at $390,000. The lender that was used didn’t require Mortgage Insurance and caters specifically for clients whose needs were outside of the norm.
Tax Debts are unfortunately a reality today whether you like it or not or whether you currently face it or not. But just like Paul, there are several other small business owners who have lost their peace of mind but have regained it thanks to refinancing tax debt specialists. If you are concerned about your tax debt situation we recommend you to approach one immediately.
