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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.

3
votes
5answers
435 views

What should I do when my friend doesn't pay back a loan I gave him? [on hold]

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 ...
43
votes
8answers
14k 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
165 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
417 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
14k 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
286 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 ...
7
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
207 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 ...
60
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
373 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
510 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
112 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 ...
65
votes
9answers
19k 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
195 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
2answers
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
92 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
0answers
17 views

Do CDO tranches have different maturities?

While doing a bit of research on CDO's online I stumbled upon something that I cant quite clear up. For a sequential pay CDO with a reinvestment period are all the tranches paid down (assuming no ...
0
votes
1answer
87 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
462 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
107 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 ...
106
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
253 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
132 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
729 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 ...
0
votes
1answer
72 views

Easy ways to hedge against debt overleverage and potential inflation as a personal economic agent

Every prediction is correct... at some point in the future. However, there are economical indicators that would be considered teaching points if a financial crisis were to occur at any point in the ...
2
votes
1answer
251 views

I am a co-founder departing from a startup with debt, should I cover a portion of the debt on exit? [closed]

I'm a minority partner in an e-commerce startup, now departing due to personal reasons after being with the team for a couple of years. Founders agreement has a clearly outlined 4-year vesting ...
8
votes
5answers
3k views

Pay off car debt, or start (value) investing?

I am looking for a method to calculate - or estimate - whether it would be better to pay off car debt or start value investing in stocks. My history: We are soon to get about 1900 USD/month in ...
3
votes
6answers
484 views

In what order should I decrease my loan debt?

I currently have federal student loans, and a personal loan I took out for college. Below are my percentages for each. I am wondering which loans I should start paying off first to ultimately not ...
16
votes
3answers
673 views

How can I survive the economic crisis I see will hit Argentina soon?

I'm from Argentina, where the shit is about to hit the fan just like 2001. We are going to have a crisis similar to Greece in recent times (or us 17 years ago): all debt related. I'm not an economic ...
0
votes
1answer
57 views

how to calculate holding period returns of a bond if they coupon is reinvested?

I was reading a book about debt securities and bonds. There is a way given in the book that calculates HPR of the bond. If an investor purchases a bond at Rs. 104, earns Rs. 8 as coupon, which ...
1
vote
3answers
177 views

Which is better -to save money or pay down debt?

Generally speaking, if you've come into a little bit of money (for example, the profit from the sale of real estate), is it better to use that money to pad your savings account or pay down your debt ...
0
votes
2answers
212 views

Ramifications of not paying a credit card

Scenario - Credit Card bill has not been paid for about a year. (A small amount, about $1700.00) There's a debate in the family. One side says pay it all off now (money was received from the sale of ...
24
votes
6answers
9k views

Potential debt collection scam from National Credit Systems?

Yesterday I received a letter in the mail from an organization called National Credit Systems. In the letter, they say that I owe them $230 to the apartment manager that I rented from 3 years ago. I ...
0
votes
3answers
153 views

Should I Invest While Attending College?

Should I invest a portion of my summer job income this summer, or should I save it all to help pay for my Freshman year in college? I figure since I'm still living at home, it would be best to utilize ...
0
votes
0answers
17 views

Does the % of loss claimed on US taxes affect my liability on business debt

I have a partner in an LLC and this year I will take a larger portion of the business losses on my US tax return. We are 50/50 owners in the business and have a SBA loan. If I claim for example 70% ...
1
vote
3answers
238 views

Can bank take money from my account if my parent has debt in same bank?

As title says I am interested if bank can take my money from my account in case my parent has debt in that same bank (or in other words owes money to that same bank)? Most importantly, is this ...
0
votes
2answers
77 views

1099-C question

I did not work in 2017, and do not have any W2 forms for 2017. I am single, and I have been living on family support, I am currently trying to get disability. I received a 1099-C form in 2017 from a ...
1
vote
1answer
90 views

Newbie Question regarding Fiat Currency & the 'Promise to Pay' statement [closed]

I am a newbie and wanted to ask a quick question regarding statements that economists make, that is: "A currency is a promise to pay" "US will not be able to pay it's debt" So that I can ...
3
votes
0answers
100 views

Who to contact to understand my credit score?

When I was a kid, all the way until I was about 18, I was very ill. I would often have to go to the doctor or hospital and get treatments and scanned, etc. I have multiple debts that occurred when I ...
-4
votes
2answers
434 views

Can you abandon debt if you move address and open a new bank account? [closed]

This is a hypothetical situation. Let's say Bob, who lives in the UK, has a lot of debt to bank A, about £10,000 in credit card debt and another £10,000 or so in loans, overdrafts, and unpaid fees. ...
9
votes
5answers
1k views

HELOC vs Federal Student Loan

Given the following assumptions: Interest rates are the same for HELOCs as Federal Student Loans (they're both hovering around 5% right now). Loan amount could range anywhere between $10,000 and $40,...
5
votes
1answer
319 views

Can a jobless person get a home equity loan if he has other sources of income such as stock dividends?

Suppose a jobless person has a fully paid property. He wants to take out a home equity loan. Will the bank reject his loan application due to his lack of salary income as a jobless person? This person ...
27
votes
10answers
7k views

Is it foolish to borrow 2.5X income? [closed]

I base this question from USA Today, which claims that median household income is $59,000 and average household debt is $137,000. They say: suggesting that many Americans are living beyond their ...
1
vote
2answers
754 views

Can I transfer credit card debt to someone else?

My wife used my credit card in her business and used 20,000 (AMEX CARD) and then she couldn’t pay off the debt, now it’s hurting my credit and we wanted to move the debt from me to her, taking in ...
6
votes
4answers
305 views

What backs credit cards?

I'm admittedly a novice when it comes to finance, so this may be a stupid question... Are credit cards backed by actual money? To clarify, when I get approved for a credit card with a $10,000 ...
3
votes
1answer
221 views

Can credit card debt be negotiated?

A family member with Credit Card Debt has missed a few payments. The bank sent a letter saying that they would be willing to settle for 20% less of the current debt. Question: Can the debt be ...
1
vote
0answers
50 views

What happens to federal debt that passes to a collection agency and gets removed from credit reporting agencies?

Do medical bills from federal or state funded hospitals that have gone to a collections agency and subsequently removed from my credit report still have to be paid to the government?
27
votes
5answers
6k views

What method do I use to pay current expenses while paying off credit card debt?

I’m hoping you can help me with a question that seems very hard to google for some reason. I have $20K in debt on 4 cards, and I have set up a plan to pay off the deferred card on time, and the ...
1
vote
1answer
59 views

Will I be able to get an FHA home loan if I opt for a voluntary repossession on my current auto loan?

What i'm asking is will my credit go down that much and if I decide to voluntary repo? I'm currently at 650. If I can't get a FHA loan what are my options for buying a home with a repo on my credit ...