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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125
votes
16answers
11k 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 ...
26
votes
6answers
20k views

Where do countries / national governments borrow money from? [closed]

It seems that every country on Earth is in debt, but nowhere on the news do they ever mention to who. If countries are all in debt to each other then why not just cancel all the countries debt. If ...
5
votes
4answers
136 views

Is debt almost always the cause of crashes and recessions?

It seems every great crash, the underlying fundamentals always point to an ever increasing debt until it becomes unsustainable and bursts. How true would you say is that statement above?
2
votes
2answers
179 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 ...
5
votes
2answers
87 views

Putting debt out long when interest rates are low?

This is something I heard once from a caller on a financial radio program. What does it mean and what is the logic behind this statement?
6
votes
4answers
3k views

Should I pay off HELOC or save?

I've heard the principle of "Pay yourself first", implying that saving some money each month should be a priority. However, I've also heard that being debt free is important, and it would be good not ...
6
votes
2answers
570 views

Joint ownership on home (50/50), when I apply for a loan, do they look at total mortgage payment as debt or half?

I am in joint ownership of a home (50/50). When I apply for a car loan and they are looking at my credit report, do they look at the total mortgage payment as my debt or only half? Does the credit ...
4
votes
5answers
4k views

Mortgage Due Date versus Late Payment Penalty - Can the loan company call me daily?

My mortgage is due on the 1st. I was told paying a week after the 1st to match my paychecks wouldn't be a problem. In fact each and every statement has a date where if I pay after that date, I owe a ...
8
votes
4answers
1k views

What do you do when a family member won't pay you back?

What do you do when a family member won't pay you back?
8
votes
3answers
314 views

Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!

Is this legal? This was a private loan within a small business. I was under the assumption that the bill was paid in full 15 years ago. My only drawback is that I never got them to sign to verify the ...
6
votes
4answers
357 views

Would it be better to borrow money from an elderly relative than from a bank?

Would it be better to borrow money from an elderly relative than from a bank?
15
votes
2answers
3k views

Paying off student loans early/lump sum — best practices?

My wife & I have run into a large sum of cash recently and are interested in paying off/paying down our student loans -- about $30k between us, at about 6.5% avg interest. We're both earning ...
11
votes
4answers
513 views

What's the general principle behind choosing saving vs. paying off debt?

In "general" is it better to pay off one's debt (line of credit, etc.) or is it better to invest (retirement account / RRSP or the like)? I understand that the answer will depend on terms of debt and ...
9
votes
2answers
318 views

Can you calculate the ROI on your credit score?

I've heard it said from people who work in the industry that your credit rating isn't a measure of your ability to pay, but rather a measure of how profitable a customer you are. I've also heard ...
10
votes
4answers
5k views

Co-signing & dying: What if a loan co-signer dies? Is estate of co-signer liable?

A grim and tragic question perhaps, but I'm curious: What happens when a person that co-signed on a loan dies? Is the co-signer's estate potentially liable until the loan is paid off, the same as if ...
19
votes
9answers
2k views

What is the difference between “good debt” vs. “bad debt”?

This other question about home renovations makes reference to the concept of "good debt." Could somebody explain the concepts of good debt vs. bad debt, providing examples of each? Are there cases ...
5
votes
2answers
144 views

When applying for a mortgage, can it also cover outstanding debts?

When applying for a mortgage, can you also add some extra on (£10k) to cover car finance? Or is there any benefit of keeping them separate?
5
votes
4answers
216 views
20
votes
17answers
3k views

I spend too much money. How can I get on the path to a frugal lifestyle?

How do I live a frugal lifestyle? I'd like to live on less but it doesn't seem easy. How can I get started? I want to get out of debt and not have to work until I'm dead.