QUICK THOUGHT: This video deals with Refund Anticipation Loans (RALs), which are short-term loans at very high annual interest rates. Fortunately, these types of loans are quickly disappearing, but they are only one of the many ways in which low-income consumers are taken advantage of by businesses that don’t have their best interests at heart. Check cashing businesses continue to thrive by issuing short-term loans at very high interest rates, not in anticipation of tax refunds, but any day of the year. If taxpayers could renew their RALs as they can with loans at cash checking businesses, they would quickly end up in major trouble. Consumers of all ages need to educate themselves on how to recognize a bad deal.
READERS, What Do You Think?
Do you have to file federal and state income tax forms if you earn money?
Do you file your own taxes? If not, who does them for you?
At what age do you think you will begin filing your own taxes, if you don’t do it now?
In what ways are Refund Anticipation Loans problematic in tax preparation and filing?
