Speak To The Experts Now Who Can Arrange Tax Debt Loans

Tax arears and tax debt can be a real issue for lots of Kiwis, and instead of trying to make arrangements with the IRD many are now reaching out to experts to arrange tax debt loans – especially when there is a large tax debt that the IRD and your bank are not willing to help with.

Often, people get into tax arrears due to economic conditions, especially self-employed individuals with businesses that might have had a good period, a qualified pay period, or have needed to be restructured. Cash flow has changed dramatically, and you’re hit with a big tax bill in a situation where you’re unable to pay it.

You need an expert that knows about tax debt loans

As finance advisers we cannot change history (even though we’d like to at times) so we need to deal with the problems that we’re faced with and work out the best solution to ensure that we can move forward.

With tax debt, we have advisers with a lot of experience in arranging tax debt loans.

Senior adviser Stuart Wills has been doing finance for over 25 years, and I have dealt with lots of different scenarios, in most cases pretty successfully too. I’ve seen where other people have tried to help with tax debt and not always provided the best outcomes. We get lots of lenders approaching us saying they can do tax debt, but in most cases, what they propose would not be what I would recommend.

You need to be careful when refinancing tax debt and that’s where having an expert can be a real help.

Essentially, there are three key options for dealing with tax debt:

1. Unsecured Personal or Business Loans: This focuses just on the amount required and is generally paid off over a fairly short period of time, with a maximum of five years. This can be suitable, especially for smaller tax arrears amounts but it’s not going to work for everybody. It is pretty difficult to get unsecured lending for large tax debt.
2. Second Mortgage Finance: If you have a property that can be used for security, then there are more options. We use second mortgage finance quite often as with a second mortgage it means leaving your existing mortgage in place with the bank. This will often help when you approach the bank and they’ve said NO because they don’t provide finance for tax arrears. We refinance the tax arrears as a second mortgage, and then in three to six months we go back to your bank to do an increase and repay the loan. Your bank might be okay with this then as you are no longer refinancing tax debt, you are just consolidating a loan that you have into your mortgage. We would also review your mortgage at this time to ensure that you have the best home loan with flexibility that allows you to pay your mortgage off faster and redraw money as required to avoid any future issues with tax debt.
3. Refinance the Whole Mortgage: Generally, we would do this for a period of six months to 12 months or whatever is required to ensure that your situation will allow you to refinance the total mortgage back to the bank. The key is to make sure that your repayments are paid non time so we can refinance from the non bank lending to a bank which is the more cost effective and flexible option.

In a nutshell, we do have quite a number of options and it’s a matter of using the option that’s going to be best suited for your situation. That means fixing the short-term problem (which is the money owed to the IRD) but making sure that it fits in with your long-term goals.

When we are arranging tax debt loans of any kind we don’t want to just transfer the debt from the IRD to another provider.

Let’s Get Your Tax Debt Sorted

They say that there are only two things that are guaranteed in life – Death and Taxes.

We know that any money owed to the IRD is not going to go away and so we need to deal with it. We also know that the debt is only going to increase as the IRD add the penalties and interest, and so the sooner we get onto arranging the tax debt loans the better it is for you.

It can also remove a lot of stress and that let’s you get back to focusing on living and your work.

Let’s get started by making contact and we can then see what options there are to sort out the tax arrears using one of the tax debt loans that we can access today.