As Benjamin Franklin once said, nothing is sure in life but death and taxes. We all contribute a sizeable portion of our wages to Uncle Sam, and the majority of us receive a portion of this back each year in the form of a tax refund. Planning ahead and using this money wisely is a great way to help settle your debt, particularly if placed in a structured savings account for use in debt settlement.

Many programs offered by today’s leading debt settlement companies allow clients to build funds in an F.D.I.C. insured special purpose savings account through a structured monthly budget. Once these funds have grown to an adequate level, the debt settlement company will then negotiate with creditors on the client’s behalf to settle outstanding accounts for a portion of the amount owed. The quicker these funds accumulate, the faster the debt settlement company can help clients settle their unsecured debt.

Although tax refunds can be a great way to pay for that next vacation or put a down payment on a new car, the most effective use of the money for a debt settlement client is to place it in their structured savings account. This allows the debt settlement company the opportunity to negotiate with creditors and use the funds to settle additional accounts, placing you that much further down the road towards financial independence.

So the next time you cringe at the amount of taxes being withheld from your paycheck, think of it as a form of debt resolution. In the long run, using this money to pay down your debts can bring you that much closer to the day you can finally say “I am debt free!”

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