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.
5
votes
3answers
648 views
Should I pay on student loans in deferment or continue to snowball other debts?
My wife and I both have steady full-time jobs that pay pretty well while also having a good amount in student loan debt. We have other debts too, like a mortgage, credit cards and a car loan. We ...
1
vote
1answer
125 views
Chinese Brother-in-Law in Debt Trouble - What can Chinese Citizens do to Manage?
My brother in law built up a large amount of gambling debt two years ago. I guess in an attempt to save face, he hid a portion - 75,000¥ ($11,187) from his family thinking he could pay it off himself. ...
2
votes
3answers
304 views
Should I take up offers to settle with credit cards
I have been getting offers to call and seek assistance to settle with credit cards. I have so far not considered these but have I missed a trick?
Should anyone ever consider these under any ...
1
vote
2answers
152 views
When is the best time to begin the settlement discussion with credit cards to avoid bankruptcy?
I've read a variety of strategies on timing on settlement discussions with credit cards. The common one seems to be to try after first late payment, and then try again after the next.
I have not had ...
1
vote
2answers
178 views
Is there a way to simulate credit score for settlement vs bankruptcy?
I'm considering either settlement or filing a Chapter 7 Bankruptcy for about $110k in credit card debt.
However, it seems like both options will stay on your record for 10 years and also decimate ...
1
vote
1answer
85 views
When to make Credit Card payments on large balance with interest
Consider the following scenario:
A credit card has a balance of $5000 that cannot be paid off at this time. Every week I earn $500 that is deposited to my bank. My monthly minimum payment is $200. ...
6
votes
1answer
120 views
Student debt in arrears from living overseas- what to do?
I have been living overseas for 3 years and did not inform the student finance company (stupid, and totally my fault!) and they have recently sent me a letter asking to confirm my employment status- a ...
2
votes
1answer
79 views
How to calculate value of paying down mortgage and removing PMI vs higher interest debts?
How do I calculate which of these is more advantageous to do with a windfall?:
pay down my mortgage to the point where PMI will be removed
pay off a higher interest loan
Assume the amount required ...
0
votes
0answers
53 views
Collecting on a judgement
I was awarded a judgement in a civil court against a company for a fairly large amount (ie 10,000+). The company is Canadian, and in the same province, but not local to my city of residence. Due to ...
2
votes
1answer
296 views
Declaring bankruptcy vs just not paying off large credit card debts (no home, no car or large assets owned)
So I'm considering just letting my credit card debts go unpaid till they close. (The goal was to find some way to pay it off but I need to consider the worst possible case)
The reason why I'm ...
3
votes
2answers
234 views
Debt Consolidation
I currently have a loan that I am paying on that has a 31k balance, with an APR of 9.24.
I also have a credit card with a 6300 balance, and the APR is ~17.9%.
I have an offer for a consolidation ...
6
votes
2answers
572 views
Is it possible to pay off a friend's debt without them being taxed on it?
I'm in England.
Let's say my friend has £45,350 salary, and a credit card debt of £5,000. Were I to pay that debt off for them, would that £5,000 from me count as income, increasing their tax bill? ...
1
vote
2answers
157 views
Should I pay off a credit card or a collection balance first?
I have a collection and a credit card with roughly the same balance. I received a bonus and I am able to pay off one of them completely. Which is more beneficial to pay off first?
0
votes
1answer
187 views
Improving credit: what should I do about very old debt; ignore, settle, or pay it in full?
I have about $6,000 of very old debt. It went into collections about 3 years ago when I was in college.
Today I have a good job, and I am thinking about the future. I am now interested in improving ...
0
votes
2answers
178 views
What is rolling over debt?
I've been hearing this term quite a bit and I don't really understand what it means. Is it any different from re-financing?
57
votes
8answers
20k views
Can I become debt free or should I file for bankruptcy? How do I manage my debt and finances?
I am 35 years old, single, and live in the US. My income is 78K to 80K after taxes and insurance.
I pay $1,500 for rent+utilities, $150 for phone bill, $450 for auto loan, $300 for auto insurance (...
1
vote
2answers
169 views
High credit card debt strategies - while doing R&D and trying to launch your own tech startup
In 2016, I made a series of hasty startup decisions to put large business purchases on my personal credit cards - that's around 80% of my current $150k in open credit card debt.
For the most part, ...
0
votes
1answer
263 views
Open Credit Card Debt and Salary needed to not go bankrupt
I'm in a strange situation with close to $150,000 in open credit card debt and currently can't make the next payment. (While they were initially low-ish APR's. They are all at 16-27% APR or higher.)
...
1
vote
3answers
90 views
What would the formula for loan payoff with daily compounded interest and paid 5 days per wk?
I'm interested in calculating the impact of making payments on my student loans daily (5 payments per wk).
For example my current loan is 50,000$ @ 5.05% interest compounded daily. The term of the ...
4
votes
4answers
517 views
Why can't US students borrow at US-bond rates for studies?
Inspired by this question: How can I prepare for my US student debt?
I can see the interest rate is a staggering 9%, is it true students can't aquire more cheaper finance? And if it is true, why? ...
67
votes
11answers
18k views
How can I prepare for my US student debt?
I'm a student at Drexel University. Drexel is a notoriously expensive school, and I pay roughly $35,000/yr in tuition, after awards. What's more, it is a five-year school. Currently, I'm in my fourth ...
20
votes
1answer
4k views
How do I know what and how much my debt is?
I had excellent credit, large amount of savings, and opened a wine bar. As money drained, and debts accrued the landlords got selfish and I didn't have the funds to fight it in court (at the time), ...
3
votes
1answer
167 views
If I carry a lot of debt and few assets, how should I make out a will?
How should I word my will if my debts outweigh my assets? I don't want to leave any family members stuck with a huge bill when I finally pass away, so what should my will say?
Clarification: This is ...
8
votes
1answer
267 views
If I claim my parent on taxes does that make me responsible for their past debts?
I have supported my parent for most of the year and paid for everything. Housing/food/transportation and other things. So I want to claim them on my taxes.
My concern is this:
They have a large ...
0
votes
0answers
27 views
Redemption Date and value of a Debt
In Indian Stock Market, When I searching for Debt Securities I found the following fields.
Redemption Date
Redemption Amount
Conversion Date
Conversion Amount
What does it mean for? Is the ...
0
votes
2answers
135 views
How to pass on personal debt for R&D to a startup?
I just realized that I've lived frugally for the past year and most of what I make goes into paying off some hasty decisions in 6 digits worth of (now) high APR credit card debt.
I've spent quite a ...
3
votes
5answers
582 views
What should I do when my friend doesn't pay back a loan I gave him? [closed]
I lent money to my friend for his wedding through my credit card. It was around $5,000. He said that he would pay me back within 1 month. It has been almost 5 months. Every time on his salary date I ...
45
votes
8answers
15k views
Paying off debt and living within means vs. long term planning
My husband and I are divided as to the best way to handle our current financial situation. First, a little background.
We are in our high 20’s, have been married for six years and have three kids. ...
2
votes
1answer
196 views
Paying off student loans in anticipation of home purchase
I graduated college in May and have been working full time since. I have $19,000 in student loan debt, all subsidized/no interest yet, that goes into repayment soon. I am also getting married next ...
4
votes
2answers
430 views
How do I calculate the benefit of contributing to 401K vs paying off consumer debt?
I have a ~$15,000 loan with a 6% interest rate.
My company matches half of my 401K contributions up to 6%, and I am in a 25% tax bracket. I currently contribute 15% of my income to my 401K.
How do ...
17
votes
6answers
15k views
What does it take to get a 0 credit score
I'm not sure if a 0 credit score is the same thing as having 'no credit history'. I'm wondering how long it would take a credit score to drop to 0 (something Dave Ramsey says happens eventually after ...
6
votes
5answers
351 views
Clear (agreed) overdraft or start emergency fund first?
From what I have read, the general consensus is that it is best to set up an emergency fund first and foremost before beginning the process of clearing debt, regardless of how illogical that approach ...
34
votes
3answers
11k views
Should I pay myself back for paying family's rent out of our pool of money?
A few months ago, I paid the $1,500 rent on the house where my family and I lived. My siblings and I are in college and we work part time jobs to get by.
My father could not afford to pay the rent ...
8
votes
3answers
6k views
INR 10 million borrowed from friend at 7% interest per annum
If my friend transfers INR 10,000,000 into my bank account and we make a legal document for the same to return the amount at 7% per annum for next 12 yrs, should I pay tax on the same?
If my salary ...
1
vote
3answers
216 views
Cash out Roth IRA or not?
I am 28 years old and in nursing school full time. I will graduate in May with my RN. I have about $10,000 in credit card debt costing about 20% interest and I am only able to make the minimum ...
61
votes
6answers
11k views
Wife is cosigned on a credit card with her parents — real assets are also shared. How to protect my credit?
A few years ago I got a credit monitoring app and started watching my credit score (high 700's). It's been climbing slowly and sends me an alert when I apply for new credit - like when I bought a car ...
4
votes
3answers
410 views
Monthly terms on mortage are significantly lower than rent, but I already have debt. Does it make sense to buy a house?
Short version. We are currently saving around 1.5k a month. We have 3k in savings. We have around 80k in debt. We earn 55k a year.
The monthly payments on a mortgage for a 180k house are ...
1
vote
7answers
583 views
Buying a brand new luxury car
I read this and this questions - although not all of the answers. My question is fairly similar to the first linked question although I have different circumstances.
Context
I am a 29-year old ...
-1
votes
1answer
126 views
Financial Debt status
I took loan of GBP 4000 in 1996 & then left UK in 1997 without paying. I also used credit card & bank cheques for GBP 6000 but left UK without paying.
Are these debts erased from my identity ...
66
votes
9answers
20k views
How is early-and-often home buying as “get rich” advice feasible?
I am being told by this guy that the following is a guaranteed-to-work way to become rich and retire early.
He says to start early. 20 years, or near that age. Buy 1 house a year. Rent it out. Start ...
5
votes
1answer
204 views
Settle credit card debt now or wait
Several years ago, I had 3 credit cards. After having financial issues (job loss and several other unfortunate events), I was not able to keep up with the monthly payments. I stopped payments on all ...
2
votes
3answers
1k views
Withdrawal from Roth IRA?
I am thinking of withdrawing all of my money from my Roth IRA as of now. I currently only have a balance of $2536 and have only $283 in investment returns. I know, how there will be some taxes ...
0
votes
1answer
127 views
Transferring personal debt from startup costs and operations to a corporation
For a long time, I've been a one person startup, and have just bundled all business costs - presenting at conferences/travel, office rent, hardware equipment purchases, etc., to my personal account. ...
0
votes
1answer
133 views
Why do CDO's have a reinvestment period?
If CDO's collect all the cashflows from their underlying assets and then pay them out to the CDO investors whats the need for a reinvestment period? and where is the principal that is being reinvested ...
1
vote
5answers
498 views
Should I use 3k on my vehicle loan to get out of debt?
I currently am in debt with a vehicle loan about 18,900$ and with 12k student loan debt. I currently have 3300$ that I have in my savings account not being used at all. I currently have a 1k emergency ...
1
vote
1answer
108 views
How to mark an invoice as bad debt to show as business expense
I have several invoices I've billed clients, and they have never paid. How would I label or categorize the invoice, so that it shows as a business "bad debt", and thus go as an expense on my P&L ...
107
votes
13answers
25k views
Should I take out a loan to pay off a relative's credit card debt?
Recently a close relative revealed to me that she has run up $40,000 in credit card debt over the last few years, which she can no longer manage because the interest payments are eating up all of her ...
3
votes
1answer
263 views
How to handle surprise debt mostly comprising bank charges
I left the UK back in 2012 and had an open account with one of the high street banks. Two years ago (and unknown to me) this account was 60 pounds over-drawn (facility was for about 300 pounds).
I ...
1
vote
2answers
156 views
Unexpected cash - pay off debts or buy home (to reduce child support expense)?
There are quite a few people who seem to handle personal budgeting questions, so I'll ask here, as my situation recently changed.
I am a recently divorced father of 3, and was ordered to pay child ...
11
votes
3answers
790 views
Should I get out of debt fast using Dave Ramsey's Tactics?
I currently am $31,000 in debt from school and a personal loan and I am looking to pay it off. I just started a new job; I am 21 years old, fresh out of college. I am making around 50K USD.
I have ...
