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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13
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8answers
5k views

How badly will my credit score be affected if I don't pay back a small margin debt?

I recently started trading stocks and was trading on ameritrade. I went in with just a little money to play around with and try and learn about it, but I forgot to turn off margin trading apparently. ...
0
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1answer
73 views

Is a bunch of debt now better than distributed debt in the future in terms of paying less in the long run?

This might be too theoretical but it popped into my head this concept for attending University/College. If you had the ability to choose one of the following which is best in terms of you paying ...
1
vote
1answer
188 views

How to manage the money I got from “lump-sum housing lease”?

In South Korea, there is a concept called "jeon-se", which can be roughly translated into "lump-sum housing lease" or "long-term rental deposit". It goes like this: An ...
3
votes
1answer
157 views

Why would student loans be valued at $1.04 for every dollar of debt?

According to this Yahoo! Finance article, the Department of Education has some analysts who attempt to estimate the value of the Department's student loan portfolio: For years, bean counters at the ...
0
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4answers
236 views

What would most likely happen if you owed money to a business upon completion of a service but realised that you don't have a way to pay?

I came pretty near this situation, but luckily I had an extra debit card (although I would've preferred to use my credit card). I was at a vet to prepare my pet for a surgical procedure, and they ...
19
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5answers
7k views

Why don't most people file Chapter 7 every 8 years?

Please explain to me why more people don't follow a formula like this: Converting all their assets into exempted assets (for which there are tons of options, regardless of your state -- ERISA-...
2
votes
0answers
51 views

How many “Charge Offs” can a company put on a single debt?

A while ago I took out a loan and couldn't pay it off due to loosing my job. I got another job, and before I could start making payments, a collections agency called me up about the loan. I paid it ...
0
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1answer
45 views

General price lowering and debt hypothetical

Assume for a moment that the CPI accurately encompasses all prices. Also assume that I have $100 of outstanding debt. Let's now say that the CPI decreases by 25%. In real terms, this change in CPI ...
7
votes
1answer
1k views

Does paying down debt in an S Corp decrease profitability?

Long story short - I'm a participating shareholder of a small S Corp that has debt. At the end of the year, since it's an S Corp, the profits/losses are passed down to the shareholders to be reported ...
1
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1answer
53 views

The term “debt financed” as a source of payment for doing the Acquisition, is it?

I have a question for word phrase "debt financed" in Acquisitions but for my best understanding, I would like to ask a question on random example: Let's say we have three companies: CompanyA,...
1
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2answers
173 views

Which should I pay first, Car Loan vs Zero-Interest Credit Card Promo?

I have a new car loan for $12k at 7.74%, and about $10k in old credit card debt that I just transferred to a card with a ~20% APR after the initial 13 month zero-interest promo. (So, I am not being ...
3
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2answers
188 views

Does credit score show you are a responsible borrower or a profitable client for the bank?

This might be a silly question, but I'm trying to wrap my head around how the US Credit Score works. I'm from Europe. Credit Score represents creditworthiness, which as I understand it, represents a ...
2
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4answers
541 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
127 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 ...
5
votes
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 ...
1
vote
1answer
76 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
votes
3answers
164 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 ...
0
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2answers
116 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 ...
0
votes
2answers
211 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
votes
4answers
377 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
votes
1answer
440 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 ...
1
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1answer
130 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 ...
0
votes
4answers
386 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 ...
0
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3answers
115 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 ...
6
votes
2answers
775 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 ...
7
votes
2answers
1k 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 ...
1
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1answer
142 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 ...
0
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4answers
335 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
75 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 ...
0
votes
0answers
96 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
votes
2answers
118 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
votes
2answers
153 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 ...
1
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0answers
37 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 ...
0
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0answers
39 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 ...
0
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1answer
60 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 ...
0
votes
3answers
208 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
votes
5answers
323 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 ...
3
votes
0answers
105 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 ...
-1
votes
1answer
80 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 ...
-3
votes
1answer
139 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
votes
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
votes
0answers
36 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'...
0
votes
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
vote
1answer
159 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 ...
13
votes
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
votes
6answers
484 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 ...
-2
votes
1answer
392 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
votes
1answer
501 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
vote
1answer
47 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)....

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