Credit Union Offers Tax Debt Loan Program
The State Employees' Credit Union (SECU) is teaming up with the N.C. Department of Revenue and the Office of State Personnel to get the word out about another special advantage for SECU members - an individual income tax debt payment loan.
SECU will offer qualifying members a 5 percent loan to repay unresolved balances, generating tremendous overall savings for these members and allowing them to take advantage of up to 35 percent in a penalty/fee waiver being offered by the state, a news release said.
The Department of Revenue's new program is being offered through April 30, 2012, when taxpayers will have an opportunity to repay past due taxes, with the department waiving unpaid penalties and collection fees.
Those interested in the program should contact one of the N.C. Department of Revenue Service Center locations located across the state by visiting www.dornc.com/aboutus/field.html for office locations with maps and phone numbers.
While more than 185,000 North Carolina taxpayers have unresolved tax balances totaling nearly $800 million, the average unresolved obligation is $4,600, with 105,000 taxpayers owing less than $2,000, the news release said.
Under this new loan program, a SECU member who owes $2,000 in back taxes and interest can expect savings of $700 through the waiver of penalties and fees on the taxes. Someone who owes $4,000 would save nearly $1,400 in penalties and fees on back taxes. Terms of the SECU loan will, in most cases, allow for payments of $50 to $125 per month.
"As a member-owned financial cooperative, State Employees' Credit Union strives to help its members achieve financial success," said Spencer Scarboro, senior vice president of loan originations at SECU. "The SECU individual income tax debt payment loan program ties in nicely with the objectives of the credit union, offering members affordable rates and simplified underwriting.
"Resolving past due tax liens can have a highly positive impact on the credit standing of a member, often resulting in lower credit costs, lower costs for insurance, housing and medical services and improved employment opportunities in a difficult economy. We encourage qualifying SECU members to take advantage of this wonderful opportunity to improve their financial standing."
Linda Millsaps, N.C. Department of Revenue chief operating officer, said, "This program will directly help our taxpaying citizens who have faced financial challenges during >this economic downturn. With partners like SECU supporting this effort, more people will be able to resolve their tax obligations and have a fresh start in 2012."
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