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14 Steps To Quickly Becoming Debt Free

Tackle your IRS debt first.

The worst kind of debt is probably debt that you are in with the IRS for not paying your taxes. One of the main reasons it’s important to find a way to deal with your tax debt is that if you don’t pay what you owe, the IRS may file a Notice of Federal Tax Lien. Tax liens are reported on your credit reports, and they are one of the most negative types of information that can be reported. Your credit score can drop significantly as a result. Even without filing a lien, however, the IRS can take serious enforced collection action, such as taking money from your bank accounts, wages, or other income—or taking other assets. In general, they have many more options available to collect your tax debt than traditional companies to whom you may owe money.

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