Tax debts instigate loan applications

Each year we are inundated with advertising campaigns on the television, radio and newspapers about how we need to get our self-assessment tax forms and bills sorted before the end of January. This normally means we spend many hours doing calculations and searching for the money, a task made all the more difficult with Christmas and all the extra spending in the sales still leaving a gaping hole in our bank accounts.

Many people are expected to borrow money in order to make this Thursday’s (31st January) deadline. The Revenue & Customs organisation reported that 900,000 people missed the January 31st deadline last year in 2007 and were instantly hit with a £100 fine.

An estimated £50 million in personal loans will be borrowed according to Sainsbury’s bank. These loans worked out with each person borrowing an average £11,000 to meet tax bills.

As with any personal loans it is advisable that you take the time to make sure that whatever loan you go for is something you can realistically afford to pay back. Consider the interest rates especially since this is the number one cause for people to lose control of their loans as they haven’t considered the APR and find they can’t make the payments.

Despite only having a few days to go it is important that you search the entire market to get the best rate that suits you. Many lenders will approve a loan within 24-48 hours so there is still time to arrange loans before the deadline