Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

Understanding the link between Tax Breaks and Loans

Milos Radakovic

When most people think of borrowing money, they imagine taking out a loan from a bank. Now, this is the most traditional way to do things. However, as you may be able to appreciate, this isn’t a viable option for every person.

If you have poor credit or can’t wait long enough to jump through various bureaucratic hoops, you are going to require other options. This is where your tax breaks come in.

How Does This Work?

The concept behind this is fairly simple. As you are well aware, raising children can be quite expensive. And, if you are considered a low-income family, then it can be even harder for you to make ends meet. This is why the government provides you with certain tax breaks.

If you have very young children, you get a bit more than if you have older kids. And, if your little one has been diagnosed with a disability, then you get additional funds to survive. Well, these brakes can all be used for a child tax benefit loan.

Who Is Eligible?

As you can imagine, this isn’t an opportunity that all families have. You do have to meet certain requirements to be lent a particular sum of money. Needless to say, you have to have a child under the age of 18 and both the guardian and child must be a citizen.

Also, not all income brackets get the same breaks. The highest loan possibility comes from families that make less than $30,000 a year. You can still receive benefits if you make more than this. However, if your family brings in more than $150,000 you will receive almost no breaks.

This loan is only available to individuals who receive monthly incomes. You also can’t be engaged in any other kind of temporary loan scheme.  

Finding the Right Avenue

While this is certainly a wonderful advantage, you have to bear in mind that not every lender will provide you with these funds upfront. In most cases, lenders will make you jump through numerous hoops, postponing the process a lot longer than needed.

This is why you need to do some research to determine the best avenue for you. Remember, you should consider all of the terms and conditions involved in this process. This way, you won’t end up taking any more expenses than you can pay back.

Getting It Right

If you are uncertain of how this all works, visit a good agency that has the team of professionals who is ready to help you every step of the way. Keep in mind that this can go a lot more smoothly if you have the proper experts helping you out.

In particular, you should always check that you are only engaging with a legitimate organization or system. When in doubt, do research to gather information on who you are dealing with. This can save you a great deal of hassle later on.

This is the link between tax breaks and loans, particularly if you have children. Based on this knowledge, you may just find that you have more borrowing options than you previously anticipated.

The views expressed by Magical Credit are not necessarily those of RetireEarlyLifestyle.com

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

HOME   Book Store

Retire Early Lifestyle Blog      About Billy & Akaisha Kaderli      Press     Contact     20 Questions     Preferred Links    

Retirement     Country Info     Retiree Interviews      Commentary     REL Videos