Paras Shah
www.debtconsoli
dationconnection.com : Debt Consolidation Loans - Consolidate
Debts
This old adage is not true! The reason is is not true is due to
the effect of marginal income taxes. Marginal meaning the amount
of tax you would pay on the next dollar you earn. We have all
experienced receiving a raise or a bonus only to be disappointed
with the size after taxes. Assuming a marginal tax rate of 30%,
you would need to earn an extra $142.86 to come out with an
extra $100 after taxes! Keep in mind that if you plan on
spending that $100 on an item with 8% sales tax, you could only
buy something that costs $92.60. To purchase an item that costs
$100 assuming 8% sales tax and 30% marginal tax rate, you would
need to earn an extra $154.29!
A $100 saved is worth at least $150 earned
This fact adds to the power to using credit counseling to lower
your debt payments. By reducing your monthly expenses up to
several hundred dollars per month, debt consolidation can offer
a fresh start on the road to more healthy personal finances.
About the author:
Paras Shah
www.debtconsoli
dationconnection.com : Debt Consolidation Loans - Debt
Consolidation - Consolidate Debts - Credit Card Debt
