Tax season is rapidly approaching in the US. It's seems that nearly every other commercial on TV is about taxes. In the last couple of years tax preparation companies have been pushing tax refund anticipation loans.

 

If you are like me you could always use cash. Unfortunately tax anticipation loans are a very bad idea, especially if you are strapped for cash. Most of the tax companies charge you 40% to 700% in interest to walk out that door with a check in your hand.

 

In most cases when filing your taxes electronically you can have your refund in ten day to around two weeks. Many states offer free electronic filing as does the Internal Revenue Service (IRS). Many online tax preparation websites such as Turbo Tax will allow you to file electronically for a small and affordable fee.

 

I myself like to keep as much of my hard earned income for myself as possible and tax anticipation loans isn't the smart way to do it.

 

Don't get swept up in the tax anticipation loan scam, it's just another way for companies to further exploit consumers. So if you do go to a tax preparation company such as H&R Block, decline the fast refund options, all you have to do is read the fine print to realize they are going to take a chunk of your refund if you go the refund anticipation loan route.

 

Why do you think they call them "loans"?