The debt tag refers to all situations where money is owed to another party, often a bank or other financial institutions. This tag covers how to get out of debt, how much debt to carry, and other borrowing related questions.

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3
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4answers
232 views

What can I do to rebuild credit and get out of financial trouble?

My wife and I are in some financial trouble. We are in our early 30s and our credit is terrible. We both have student loans, we have old credit card debt (though we have no current credit cards). ...
4
votes
2answers
154 views

How can I manage my Credit Card Debt in Australia?

35K in credit card debt and personal debt (17K Credit Card 16% interest rate, 18K Personal Debt,Variable Rate 5yrs & 8mths remaining). I used the advice in Battling the credit car debt in ...
3
votes
2answers
157 views

How can someone with a new job but no credit history get a loan to settle another debt?

I was recently hit with a large personal debt, something that can't go against my credit score, but might if it ever went to court/collections. However, it came unexpectedly, and I am now looking for ...
1
vote
1answer
102 views

How will the New credit reporting rules affect people who are already struggling financially?

With the new credit reporting rules in place in Australia and the implications of having a black mark against your file for just being 5 days late in making a payment, whether it be credit card or ...
4
votes
4answers
489 views

In Australia, how to battle credit card debt?

I have $18K in credit card debt. What are my options in tackling this? Every month I am left with no extra money to pay anything more than minimum payment required (car, rent, another personal loan, ...
8
votes
4answers
2k views

What's a normal personal debt / equity ratio for a highly educated person?

I'm trying to figure out what a bad / normal / good personal debt / equity ratio is. Most sites deal with debt / income ratio, which is a cashflow metric, and I want to focus on assets / obligations. ...
4
votes
2answers
261 views

Are Americans in as much personal debt as the British? Are the sources of debt much different?

I recently came across an interactive infographic for the U.K. about personal indebtedness and was shocked at many of the stats in regards to personal debt — e.g. the UK national average ...
2
votes
1answer
119 views

Debt Forgiveness - Extra Payments

Student loans can be forgiven after ten years of being a teacher (link). If there is no chance for a new teacher to pay off the loan in ten years, is there any benefit to pay anything other than the ...
2
votes
2answers
183 views

Borrowing money for a semi-urgent medical expense

I need to borrow some money to pay for dental work. This will be my first time taking on debt independently. I would like to repay my dental debt at a reasonably pace without hurting my credit score. ...
4
votes
2answers
118 views

Which student loans to pay off first: Stafford or private?

I'm really trying to buckle down and get ride of my student debt. I currently have Stafford and Private loans (I owe more on my private loans). I'm wondering which are best to pay more towards? ...
1
vote
3answers
107 views

If I moved abroad, what happens to the U.S. apartment lease I'd be breaking? Would a debt follow?

I'm moving to the United Kingdom. What will happened to my apartment lease here in the United States? Will that debt follow me?
3
votes
3answers
83 views

Can I draw funds from a personal line of credit to pay its own monthly “minimum payment”?

I can guess the answer to this question, but I can't figure out why. So here goes... I've got an unsecured line of credit with a limit $30,000. The annual interest rate is 6%, compounded daily. ...
4
votes
2answers
408 views

Does paying off a car loan increase or reduce a persons credit score?

I know that closing credit card accounts reduces the number of open credit lines, and paying off a car loan would also reduce the number of credit lines. I have had the car loan for over 3 years, it ...
0
votes
1answer
89 views

Should I have to pay the bad debts

I got educational loan on 2008 from one of a Bank in India. So far I am paying only interest money not principal money for it, but it’s also not regularly, I left some intermediate gap on it. Last ...
5
votes
3answers
492 views

How to pay bills for one month while waiting for new job?

I recently, and unexpectedly, lost my job. Because I had summers off (no paychecks either), I've been using my credit cards for most purchases, saving what cash I had saved from the previous year to ...
2
votes
1answer
148 views

How do I deal with a collection agent who refused to state a reason for calling?

I got a call from a number registered to a collection agency (I looked it up online). When I answered, knowing some of the Fair Debt Collection Practices Act, they asked if I was Phillip. I asked him ...
0
votes
2answers
3k views

How do I get my name removed from a co-signed car loan?

I am the primary signer for a car loan consigned and being paid now by my son. Is there any way I can get my name removed from this loan?
4
votes
1answer
199 views

How do I tell the Canada Revenue Agency that they're sending someone else's documents to my address?

A business acquaintance used my address for mail correspondence, with my permission. Actually, he even didn't stay in my place and I don't have any of his personal belongings here. Later, I asked him ...
-2
votes
1answer
72 views

Why does low interest rate prevent bankruptcy and foreclosure?

In recent news, there is a saying like low interest rate prevented bankruptcy and foreclosure. I can't get it. This seems only to apply for variable interest rate loans... How is low interest rate ...
5
votes
2answers
118 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
-3
votes
2answers
161 views

What happens when a home is worth less than the amount the owner owes on the mortgage?

I hear that price of a house affects the mortgage on the house. For example if the price of the house goes lower than what is owed, debtors will have a risk to deal with. I am not sure why this is ...
9
votes
5answers
310 views

Paying Off Debt: When CC Companies Won't Reduce APR

For the past two years I've been living, for the first time, under the weighty, grey cloud of credit card debt. Foolish use of personal credit cards to fund asset purchases for an LLC have resulted in ...
5
votes
1answer
251 views

Does total US public debt include state debt?

When I see total US public debt, I wonder whether state debt is included. If "total US public debt" used differently for different cases, I will restrict my case to the usage in national ...
3
votes
2answers
1k views

How to start a business when you owe the IRS and Everyone else?

My history: In 2006 I was doing pretty well, my online ventures were doing around $30k profit a month however I am a programmer and did not run the business side of it well at all. (taxes, forming a ...
8
votes
1answer
286 views

Pay off debt with RRSPs, or refinance and roll into Mortgage?

A few years of a combination of under-employment and trying to keep afloat a floundering business has left me (us) with 50k debt on a line of credit and a credit card. We are getting 5k back from ...
6
votes
1answer
207 views

What is a rule of thumb for accruing debt on a rental property?

My sister and I were fortunate enough to inherit 2 properties from my father, one a suite of apartments and cottages worth about ~$3M and also his home. We currently have about $200K in mortgage ...
6
votes
1answer
130 views

Borrowed Canadian Money and paying back in US

My husband borrowed Canadian money from his relative to pay for his American education. At the time the Canadian dollar was .50:1. Now the exchange rate is 1:1 and we are paying back the debt in US ...
2
votes
3answers
247 views

How do I account for monthly expenses when calculating how much house I can afford?

I am looking to buy a house (in the US), and I'm using a bunch of online calculators to see how much house I can afford. In each calculator, there's usually a field that asks about monthly debt. What ...
5
votes
2answers
247 views

Cash out retirement account or sell and downsize the house to pay off line of credit?

I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear. I can only come up with 2 scenarios to clear this amount based on my home equity and ...
2
votes
1answer
138 views

How long does it take to have no credit history?

In considering my 5-10-20 year goals recently, one of them is to not use debt - whether credit card, mortgage, car loan, etc - even on a monthly basis. I currently am young, single, and have no debt ...
10
votes
3answers
2k views

can the government or debt collectors garnish money from any bank account to which the debtor has access?

A trusted family member has access to my savings account. The savings account is mine, but the family member's name appears next to mine, which means that they are entitled to withdraw money from the ...
7
votes
2answers
850 views

How do I assume title as the co-signer on car loan after the borrower's death?

I signed for a car with my room mate she has since passed away. I just found out she is the only person on the title. I am stuck with paying the car and no title. There was no estate, no will or ...
4
votes
2answers
1k views

How can I build up my credit history when I have nearly none

I am trying to build up my credit, but I'm not sure how to. Currently, I only have 2 minor things on my report. Both are not necessary good. I owe $75 to a company(which I plan on paying now that I ...
2
votes
1answer
484 views

How much time does one have to pay an invoice in Australia?

How long, legally, does one have, to pay an invoice? I have done extensive research on this, and there are too many contradictions on the Internet and a lot of it seems, to me, to be hearsay. I cannot ...
8
votes
1answer
262 views

Is it correct to take interest swap rates as a prediction of future bank rate?

In the context of managing the risk of (non-fixed rate) debt where the interest rate is linked to a bank base rate, I want to understand how/where to get a sense of where a bank's base interest rate ...
10
votes
2answers
1k views

Should I pay off zero interest debt early?

My cash reserves are around $11k, including an emergency fund of about a month and a half, and I budget rigorously. The only debt I have is $7k at zero interest, paid at $300/month, and it's from a ...
7
votes
2answers
133 views

Credit Consolidation, Credit Settlement

I've done a little research but I would like to have actual feed back from people. I am currently behind on credit card payments and I am not sure exactly what to do. The interest rate is high and I ...
2
votes
2answers
343 views

How are minimum payments calculated for auto loans, education loans, etc.

I'm working on a calculator and I have a good handle on Mortgages (amortization) and Credit Cards (daily average, apr, multiply between 3-5%), but I'm not sure how to calculate minimum payments for ...
4
votes
2answers
193 views

How would a collection against me affect my credit

I went to a new city two weeks ago and rented a 2011 Civic in the meantime. On the last week of the rental, someone hit my car in the front bumper in a parking lot. The damage was a 2 by 3 inch dent ...
20
votes
8answers
1k views

Optimal way to use a credit card to build better credit?

I have a credit card with a $700 limit and I am curious how to optimize credit gain with it. Right now, I use it once a month (usually on something small like a drink from a convenience store or ...
12
votes
4answers
803 views

Can someone help me understand my student loans?

I have more loans than these but I am wondering how to handle these three (all with the same bank): 3%, last payment ~$36, current balance $6153, original amount $5500, payoff balance $6170 2.5%, ...
7
votes
3answers
254 views

How to get started with savings, paying off debt, and retirement?

I am getting married soon and I am in grad school (I get paid a stipend and have a tuition scholarship). I have no retirement plans available to me. My fiancee will be starting her job soon and will ...
0
votes
1answer
268 views

Can my company buy my personal debt?

I owe $50,000 to my mother and father, who have helped me consolidate my debt over the years. Can my business buy my debt from my parents for the full amount I owe and then forgive me from having to ...
7
votes
4answers
132 views

When does credit card counseling work?

I have a friend who has $18K in credit card debt and makes $25K a year. I think this person needs help, and I've thought about recommending credit card counseling. However, I've also read articles ...
1
vote
1answer
176 views

Governments Debt/GDP and Budget (deficit/surplus), how to read the figures to decide what bonds to buy?

After searching for hours on Google I found these two great tables (theya are also sortable): list of Government Debt to GDP ratio list of Government budget (I took hours to find this because I ...
8
votes
6answers
586 views

Is it OK to use a credit card on zero-interest to pay some other credit cards with higher-interest?

I was reading up on What is the difference between "good debt" vs. "bad debt"? and it says borrowing money from a credit card is a bad-debt. So, I was wondering if the credit card ...
7
votes
4answers
2k views

Collections for Medical Bill - Pay Settlement or Full Amount?

I live in California, and I had an ER visit in November 2010. I originally owed ~$800. I've been contacted by a collection agency, and offered a settlement of ~$400 I have verified with the original ...
4
votes
5answers
237 views

Repaying Debt and Saving - Difficult Situation

I apologize ahead of time if this is too simple a matter for this Stack Exchange. My mother has been in a sticky financial situation for a while now, and I was hoping to get a little bit of help, and ...
1
vote
3answers
191 views

Bank/broker that offers no credit cards (ally.com/vanguard.com)?

Is there a bank/broker that offers no credit cards? Are ally.com and vanguard.com good choices? I'm considering debt settlement, and have been advised to open a bank/brokerage account not owned by ...
4
votes
1answer
168 views

Can I pay a collection agency in a way that will improve my credit score?

Finally, I've got cash in the bank. But this comes after a few years of building up a credit card debt of about $5,000 and not paying it off. A collection agency has come after me. I'm sure my ...