The act of paying off debts (either partially or completely). One may do this to lower or eliminate a monthly payment and regain control of one's personal finances. There are different ways to do this, but the most popular are based either on the total amount of each debt or on the interest rate. ...
1
vote
1answer
112 views
Pros and cons of cashing out my RRSP in order to repay HELOC used to start a business, now failed?
I'm in my mid 40s and a few years ago I used my HELOC to start a new business. I was paying interest only on the loan in hopes of paying off the HELOC in lump sum amounts once the business was ...
4
votes
3answers
153 views
How should I calculate the opportunity cost of using a 401(k) loan?
I've seen a number of financial articles that discuss the "opportunity cost" of using a 401(k) loan; however, I don't seem to recall ever seeing a good formula or calculation that can be done to ...
6
votes
1answer
229 views
What is the advantage to me in not paying off my debts?
I have some credit card debt that is currently on cards where there is 0% interest for periods of between 14-22 months. There was a transfer fee of around 2.9-3.5% for the balance from old cards.
I ...
4
votes
5answers
341 views
Should we pay down our HELOC or pay extra towards our mortgage?
We have a mortgage at $207K at 5%, a HELOC balance of $7500 at 3.25% and a credit card balance of $3300 at 13.9% APR.
In savings we have $116K and in a mutual fund we have $21K
My plan was to take ...
9
votes
6answers
259 views
Are my monthly commited expenses out of whack?
Okay, my wife and I struggle with our finances and we are trying to get them in order.
My net pay is approx $1300 every two weeks (my wife does not work)
That is after health insurance premiums
...
0
votes
1answer
101 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 owing and then forgive me from having to ...
7
votes
4answers
400 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 ...
8
votes
2answers
427 views
How can I determine if a debt consolidation offer is real or a scam?
A friend of mine recently attempted to go though debt consolidation. He received a phone call and was offered really good terms to consolidate his current debts. A promise was made that the company ...
11
votes
6answers
2k views
Should I pay off my 50K of student loans as quickly as possible, or steadily? Why?
I was an idiot in college. I basically just used student loans and got very few grants. I also spent way too much time in there. I now have two bachelor's degrees and a master's degree. About 7 ...
14
votes
10answers
1k views
Snowball debt or pay off a large amount?
I recently received a large amount of money, well large in my eyes, around 5000 dollars.
I have the following cards:
$10619 citi card ($234.35/month)
$2500 Best Buy Card - deferred interest ...
11
votes
8answers
1k views
At what interest rate should debt be used as a tool?
I know people love to preach the merits of being 100% debt-free, but when used intelligently, debt can be a powerful tool. All else equal, if I have debt at an interest rate of say 1% and have an ...
12
votes
11answers
2k views
Should I pay off the credit cards now or do the monthly payments thing?
I have 3 credit cards with a total balance of about $36k. Two of the cards are at 2% and the last one is at 0%. With the current payment structure, I'll be debt free in 25 months.
I recently came ...
6
votes
6answers
364 views
Should we prepay our private student loans, given our particular profile?
my question is: Should my wife and I prepay my private variable-rate student loans, given our particular financial profile? Or are there higher priorities to address with any extra cash we have at the ...
3
votes
2answers
198 views
Calculating the most optimal way to pay off credit cards
I have 3 credit cards which I am slowly paying them off.
Card# Balance Monthly Interest Months to pay of Minimum
Payment at current rate Payment
1 ...
4
votes
1answer
573 views
“Debt Settlement Order” Text Spams – How do they work?
Apologies if this is too off-topic. This seemed like the closest-fit SE site for this
A lot of people will have at some point received a spam text offering some sort of help via a debt settlement ...
5
votes
4answers
282 views
Should a $150K mortgage @ 6% be paid off with $150K withdrawn from a 401K at retirement?
Should a $150K, 30 year mortgage @ 6% be paid off with $150K withdrawn from a 401K account at retirement?
20
votes
6answers
496 views
Does it make any sense to directly contribute to reducing the US national debt?
As an American citizen, does it make any financial sense to donate money in hopes of helping to reduce the US national debt?
Thanks.
7
votes
4answers
221 views
What is 'consolidating' debt and why do people do it?
I've seen 'debt consolidation' advised for people who have a lot of debt (from different credit cards, etc). What does that involve, exactly, and why is it a good idea?
Say I have:
-$1000 at 5% from ...
76
votes
16answers
4k views
How smart is it to really be 100% debt free?
For the last 2 years, I have been trying hard to be debt free without affecting my personal cash flow. I am by no means a rich person, but I have a decent salary.
I still have debt, specifically
...
6
votes
2answers
364 views
Do things really fall off a person's credit in seven years?
I'm looking to start repairing my wife's credit on which she has several credit cards from before we were married. These debts are reaching the 7 year window where I've heard things "fall off" your ...
2
votes
2answers
114 views
How to do Credit Card debt consolidation or get rates lowered?
I have a friend that has five credit cards of debt. A couple of the cards have high interest rates (20-25%). The rest are 15% and below. The total debt combined of all five cards is ~$10k.
How ...
9
votes
6answers
708 views
Should I pay off my student loan before buying a house?
Should I pay off my student loan before buying a house?
4
votes
3answers
1k views
Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?
The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt).
I know if I ...
5
votes
4answers
144 views
I have a secured line of credit (substantial balance) as well as a retirement account. Am I wisest to pay off my debt before contributing to my retirement account?
What if it will take me 15 years to pay off my debt? Should that ALWAYS be what I pay down first?
11
votes
4answers
443 views
I've often heard of the “snowball” method for paying off credit card debt. How does it work?
How does the "snowball" method of paying off credit card debt work? In what ways is it superior over other ways of reducing one's debt?
