Questions tagged [debt]

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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2
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3answers
224 views

Why do most companies have debt and are there any companies without debt?

Somewhat inspired by this question. It seems that no matter what company I hear about, they always have some sort of debt to someone. Even if the company is in great financial shape and makes tons of ...
0
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2answers
90 views

Is it possible to keep mortgage after bankruptcy?

If one declares a bankruptcy, can he or she keep his/her mortgage account and continue repaying it, while erasing all the other debts? In general, is it possible to negotiate to keep some credit ...
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5answers
2k views

How can one be financially devastated by unsecured debt?

My question is theoretical, I don't understand why people say that big piles of debt are dangerous. If one has a lot of unsecured debt and ends up defaulting on it then one does not even have to ...
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1answer
67 views

Creditworthiness of counterparty

Based on historical evidence, a B-rated counter party is approximately 16 times more likely to default over a 1-year time period than a BBB-rated counter party. Over a 10-year time period, a B-rated ...
2
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2answers
137 views

Question About Medical Bill Defense

So, I've been researching for a quite a bit and haven't been able to find a case or ruling that relates close to my situation. I went to a sleep specialty physician about four years ago who was ...
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0answers
63 views

Disputing a collection on an account that is current, but the collection agency wants the original debt amount

I have a surgery bill (Original Balance: $2,757) that I have been paying off for the past 2 years with auto-drafted monthly payments. Every month on the 1st a payment was auto-drafted from my checking ...
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2answers
176 views

Debt in a foreign country

I have spent couple of months in Lithuania in the beginning of this year. I signed up for a gym membership for 1 year. But due to covid, I left Lithuania and came back to my non-EU home country. (I ...
25
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5answers
10k views

If a bank fails, will debt be wiped out?

I have debt to Capital One. If they fail, and whoever the trustee is fails, will the debt eventually get lost in bankruptcy proceedings? Considering the Lehman bankruptcy is still ongoing, well past ...
2
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4answers
195 views

Do companies destroy value when they borrow to pay dividends?

When public companies pay dividends, their stock price will be reduced by the amount of the dividend. This makes sense to me, but I'm wondering if this applies when companies borrow to pay dividends (...
2
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1answer
174 views

So I was used as a money mule and now I have a CIFAS marker I desperately need to get rid off?

so some time back I was used as a money mule without realising by someone I trusted very much. Once he had everything he wanted (money) he then blocked me leaving me with a debt of more than £5000. I ...
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1answer
127 views

What are some good reasons to buy U.S. Government debt (Treasury bonds)? [closed]

Treasury bonds issued by the U.S. Government are considered virtually risk-free, because they are backed by the U.S. Government's ability to tax in order to pay them off. I understand that Treasury ...
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4answers
359 views

Stuck in a debt of 3 credit cards

I have 3 credit card and I have utilized the funds of these cards 100%. Now I need to pay back the amount to bank. I am from Pakistan and the currency is PKR. Here is the stats: Card 1 - 4.5K (cash ...
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3answers
114 views

The most efficient way to pay off loans/credit? [duplicate]

Supposed you have a fixed amount of money to commit every month to debt repayment... well above all minimum payment requirements. All other quirks and conditions being equal. The only differences ...
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2answers
339 views

What happens if you don't pay your credit card debt in Germany?

Thanks to COVID-19 I've lost my job, and I spent my money right and left very stupidly, and now I am in credit card debt of €3000. The bank blocked my account due to nonpayment for 3 months, and today ...
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1answer
688 views

Are there countries where children are forced to inherit their parents' debts?

Are there any countries in the world where the debts of the deceased must be inherited by the deceased's heirs? In the UK and USA, it seems to be well understood that if the deceased's estate is ...
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1answer
72 views

Where can I see at what price a company's debt is trading at?

I was reading Barron's today and came across the below quote - Hertz’s debt somewhere in the range of 30-40 cents on the dollar. If the stock actually were worth something, the debt ought to ...
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4answers
313 views

Is this method of getting free money viable and consistent with law?

A lot of credit cards these days give you an interest free period, say 24 months. They also allow you to transfer debt for a small fee, let's say 4%. This means if you keep the moving the debt around, ...
1
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1answer
72 views

Trying to understand the behavior of the bond market during the COVID19 crisis [closed]

I'm aware of several corporate bond indices that are (slightly) going up despite of the COVID19 crisis. For instance, let's take this corporate bond index as an example. Choosing the 1Y chart one can ...
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0answers
93 views

What would happen to a typical investment portfolio if the dollar collapses?

Let's say I have an investment portfolio with diversified US stocks and diversified US bonds. How would a dollar collapse affect this portfolio? And which component of the portfolio is less likely ...
0
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2answers
110 views

Is it better to start a new business using credit, even when I have money to invest

Suppose I have to start a new Limited Liability Company and the initial investment is 50000 dollars. Let's also suppose I have that money. No problem about it! Now let's suppose something goes wrong ...
3
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2answers
146 views

S/O out of collections, where to go from here?

My S/O and I have been together for ten years (not married). We started attacking all of our debts starting October 2018 in order to move into a house debt-free (except a mortgage) in 2021. My last ...
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0answers
30 views

Understanding overnight debt fund portfolios

I'm trying to understand the differences between overnight funds and a bank savings account or fixed deposit in terms of safety. These are both common ways to park money for short periods. I know that ...
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0answers
38 views

Mutual Funds Investment advice needed for beginner

I am planning to start investing in mutual funds now. I am a beginner and young(28). I plan on doing investments as a lump sum and SIP. I plan to invest 5 lakhs via lump sum now and SIP of 20k per ...
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1answer
57 views

How to define the state of “in debt”? [duplicate]

So I was reading on Forbes and it said a 2017 survey showed that 28% of workers making $50,000-$99,999 usually or always live paycheck to paycheck, and 70% are in debt. I wonder what kind of ...
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3answers
202 views

Fastest way to pay off debt

What is the best order to pay off debt? Only debt being home loan. For example, my home loan has interest rate of 3.5% and the stock market (some total market fund, e.g., FZROX, VTSMX), ideally, goes ...
2
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5answers
313 views

Downside of having a zero-interest loan for long time

I am able to get a zero interest loan (APR 0%) of €10k for my small business and I have to decide the debt repayment period (12-60 months). Mathematically, because interest rate is zero I should ...
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0answers
102 views

When do UK creditors pursue a debt after the debtor has died?

According to StepChange, creditors don't normally pursue a debt of someone who died if there isn't a large estate: Most unsecured creditors will normally write off a debt (like a personal loan or ...
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1answer
72 views

What kind of debt is an unpaid tution bill?

If someone doesn't pay their tuition to a university, is that considered student loan debt, consumer debt, or something else? I mean for the purposes of debt forgiveness (e.g. i think consumer debt ...
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1answer
135 views

How likely is a total economic collapse due to the potential coronavirus impact? [closed]

Most signs show that lockdown could easily stretch through the summer. A freeze in consumer spending would cause multiple industries to fail causing a ripple effect. To be specific, if lockdown lasts ...
15
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6answers
7k views

How, or should I repay debt during Covid-19 crisis?

During Covid19 pandemic I managed to save some money and I was thinking about repaying some of my debts, however, I'm not sure should I do it, or keep cash just in case things turn for the worse. This ...
2
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0answers
24 views

Where are business obligations, like a property lease, on the debt seniority ladder?

Consider the perspective of a REIT. If one of the REITs tenants files for bankruptcy, does the REIT get paid first to satisfy the terms of the lease or do the tenant's bond holders get paid first? I'...
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0answers
54 views

Loan for outstanding school balance

I have a an outstanding school balance of around $7,000 dollars from the 2015-2016 school year and need it to be payed off in order to transfer to another 4 year university. I wanted to know if there ...
1
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1answer
153 views

Is there any disadvantages of paying off mortgage? [duplicate]

Usually when we think about paying off mortgage it always seems a good idea as this is one of the biggest debt for most people. I was curious if there are any disadvantages of paying off mortgage ...
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5answers
10k views

Pay off Credit Card Debt now or later

I recently paid a non-refundable housing deposit of $1,300 for summer intern housing. The company I am going to work at this summer has outlined in my contract that I will receive $2,500 to cover ...
3
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6answers
460 views

Overpay student loan or mortgage first?

I am aged 23 and make £48000 a year. I have 2 sources of debt at the moment, my student loan and a mortgage I have just entered. Student Loan Details: Amount: £42775.54 Interest Rate: 5.4% Monthly ...
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1answer
331 views

Im 19 years old and is buying a $45k car with it? [duplicate]

Im 19 years old and share rent with someone. I make $2,320 a month before tax. My rent is $750 a month and i don't pay for anything else. Would it be a good idea or will i go into crippling debt if i ...
6
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1answer
495 views

Upside down on car loan, sell and refinance gap?

In order to cut down our monthly expenses we are looking to sell our car. We still owe $12,000, kelley blue book says its worth around $10,000 and we don't have $2000 lying around to cover the gap. ...
1
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1answer
46 views

Is a foreign equity holder liable for business debt?

I'm an Indian citizen residing in India. If I get 20% equity in a US company, am I responsible for the company's debts (current and future debts)? Note that this is a sweat equity (no money invested)....
0
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4answers
820 views

Sugar Daddy/Bank Help [duplicate]

I met this guy on Twitter who was interested in a sugar baby with someone to speak with, get to know, etc. He lives in IL apparently and I’m in the east coast. Initially he wanted me to buy a $200 GC ...
1
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1answer
145 views

Cannot pay enough to mitigate late/overdue fees on credit card. What is the best way to handle this?

I've tried working with a credit card company over late fees/debt. I can of course make some payments, but they're always lower than the overdue fees they continuously charge. In other words I'm ...
-1
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3answers
436 views

If I really did owe the bank a billion dollars, what would happen? [closed]

There's a saying that goes like "If you owe the bank $100 dollars, that's your problem; if you owe the bank $100 million, that's the bank's problem." Let's adjust for inflation and say that I owe the ...
1
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3answers
138 views

On a statement of Dalio and the case for gold

Last night I was watching the following videos https://www.youtube.com/watch?v=YVLJRGA5uAk and https://www.youtube.com/watch?v=AhDrvQiNV5M&t I am considering the bet on gold with respect to his ...
5
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3answers
409 views

Employer will refund me the cost of college, should I risk going further into debt?

I’m currently working towards paying off my debt. It’s something I despise. I had some emergency hospital bills come in this year. That and I have two new cars that I bought and they have turned out ...
1
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3answers
206 views

What is a reasonable percent of income used to pay interest on consumer debt?

I was looking at a breakdown of the Ontario government debt and 11% of tax dollars go to pay interest. I am interested to compare with personal finances, would 11% of annual income as interest be ...
19
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11answers
14k views

Urgently need pre-paid debit card to pay debt collector

I owe a sum of a few thousand dollars to a debt collector. I've already gone through the steps of getting a confirmation of the debt and it is a debt I know I'm accountable for. I need to pay this ...
5
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3answers
438 views

Why do companies use debt to finance business deals instead of cut the dividend?

Some time ago Altria bought a 35% stake in Juul, using $12.8 billion in cash. However if one looks at Altria's financial reports, it's clear that this is money Altria didn't have. The company didn't ...
0
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1answer
126 views

What does it mean when central banks buy bonds (QE)? [closed]

If I lend money to the government, they issue me a bond with the agreement that they will pay me interest and when the bond matures they will give me back the money I have invested. When central ...
0
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1answer
75 views

Would deflation further stress the Federal Government's Balance Sheet? Would this put in peril Debt payments and Social Security benefits?

I would like to know if deflation would represent a risk to Debt (bond) payments and Social Security benefits. To my understanding, Social Security is only indexed when there is positive inflation. ...
7
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8answers
5k views

Would the minimum payment or full CC amount be considered monthly debt?

Based on Is rent considered a debt? The question of: What is your total monthly debt payment (e.g. student loans, vehicles, credit cards, personal loans, etc.)? got me thinking. If you rack up $...
20
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7answers
12k views

Charges from Dollar General have never shown up on my debit card. How can I resolve this?

During the summer of 2016 I lived by a Dollar General and went there about once a week. I only had a debit card then and paid for everything this way. DG was notable in that I never had to enter my ...

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