Questions tagged [debt-reduction]

The act of paying off debts (either partially or completely). One may do this to lower or eliminate a monthly payment and regain control of one's personal finances. There are different ways to do this, but the most popular are based either on the total amount of each debt or on the interest rate. There are different arguments as to which one is better, but either is better than doing nothing but paying the minimums.

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3
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1answer
225 views

Buying a car and learning to drive versus paying up study loans

My wife and I have two children. Soon we will have three. Neither of us know how to drive, and we do not have a car. With the prospect of having three small children, however, I think having a car ...
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2answers
312 views

Should I pay off my 401(k) loan ASAP?

I recently saw a question on the forum about "Should I pay off my Home LOAN from my 401(k) or continue to pay Interest to myself". Most responses seemed to think that paying it off ASAP was the best ...
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1answer
87 views

How exactly does a Level / Standard student loan repayment scheme work?

I have a question regarding standard (or 'level') debt repayment plans, specifically for my student loans. Hoping someone might have some insight. "Standard repayment is a level payment plan, with up ...
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284 views

What is the best way to help my dad consolidate his credit card debt at a lower rate?

So my father and I are somewhat in a sticky situation. He has accumulated roughly $30k debts on his credit cards. He makes decent money now but the problem is paying about $650 a month in interest ...
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3answers
379 views

3 loans under my name, 2 are fixed, one is a declining balance interest loan. Which to pay first?

I've searched for this answer for a while, but my loans are set up in a different way and I'd love some advice. (FYI I don't live in the USA) Loan 1: Personal loan. It was $200,000 with a 4.95% Fixed ...
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5answers
1k views

Should I use a home sale profit to pay down student loans or put it towards next house?

I am in the process of moving and stand to profit close to 100k on my current home sale. I also owe approximately 200k in student loans. The interest rates on mortgage and loans are within 1% of each ...
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5answers
333 views

Consolidate my debt? Higher APR, but what does that actually mean?

If I have a monthly payment of $804.54 and an APR of 29.8%, does that mean that, each month, 29.8% of my $804.54 goes to paying the creditor? My situation... I have 3 credit cards and am thinking ...
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2answers
1k views

Should I stop investing in 401k to put more toward debt

I currently have a debt of around 40k between student loans and car. Both are being paid, and most of the time paid ahead/extra. But they are still taking a while and gaining interest of course. ...
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2answers
529 views

Is this a valid strategy to reduce interest payments for student loans?

I kind of messed up and didn't pay my unsubsidized grad schools loans while I was in school, so I have quite a bit of interest accrued. In total there are 5 loans and they come to about $100k. All ...
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1answer
128 views

Student Loan Repayment

I have 3 private student loans. Outstanding Principal Balance taken 08/2011 $15,000.00 Outstanding Accrued Interest as of 08/21/15 $6,678.26 Interest Rate 11.75% Outstanding Principal Balance ...
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1answer
505 views

Buy house as soon as possible or wait

I was planning to buy a house next year with around 5% - 10% down, but I decided to step back a little, and instead of buying a house next year, I plan to wait paying all my outstanding debts (around $...
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1answer
86 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 ...
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1answer
3k views

Two high-interest loans: Pay down one at a time, or split my money?

I have 4 student loans. Two are for roughly $5,000 - one at 4.5% and one at 5.6%. Two loans are for roughly $1,500 and both have an interest rate of 6.8%. Right now I have $1,000 I can put towards my ...
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2answers
5k views

How to calculate the number of months until a loan is paid off (given principal, APR and payment amount)?

Does anyone know what formula they use for this When will you be debt-free? calculator? I want to put it in a Google Spreadsheet, but I can't find a payments-to-debt-free formula using my Google ...
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2answers
402 views

How often should I pay my student loans?

I've got ~$30K in student loan debt, spread out between different loans with different interest rates. My minimum payment is $190, but I'm in a financial position where I can afford about $750 per ...
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1answer
656 views

Should I withdraw money from IRA or refinance home to pay credit card debt?

Should I refinance or withdraw from IRA to pay off 25K of credit card debt? I am 64, self employed earning about 30K/yr. My wife is retired. credit card debt snowballed and I now want to pay it off ...
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1answer
459 views

What are some ways to negotiate with a lawyer to pay off an outstanding debt?

I owe around 7000 for an outstanding debt and they are trying to take me to court for it. If I have 4000 now, how can I get them to accept that money to take care of the entire debt amount? I know ...
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3answers
342 views

If I have a lot of debt and the housing market is rising, should I rent and slowly pay off my debt or buy and roll the debt into a mortgage?

I'm a Canadian divorcee who walked away from marriage with debt. I have a great income, but I owe $60K on a line of credit and credit card debt as a result of litigation. I pay $1,500/month in rent. ...
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2answers
479 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 ...
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2answers
394 views

What's the best use for this money? Its only a small amount but can make a big difference to me

Around two years ago, after working and living in France for a year I came back to the UK and was £11,000 in debt due to 2 credit cards and an Apple loan for some computer equipment. On top of that, I ...
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1answer
174 views

Debt Forgiveness - Extra Payments

Student loans can be forgiven after ten years of being a teacher (link). If there is no chance for a new teacher to pay off the loan in ten years, is there any benefit to pay anything other than the ...
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2k views

How do I obtain copies of 1099-C forms from credit card companies?

I was supposed to receive 1099-C forms from credit card companies for forgiveness of some debt. I have not received them (at a friends place, only 1 received), but unfortunately I am out of country. ...
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2answers
245 views

Best way to pay off debt?

I have a home equity loan- ~$42K at 7.5% and about $10K in credit card debt at 16%+. I have several hundred thousand dollars in vested stock options from my company (part of my long term incentive ...
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2answers
102 views

Is there a program out there that will give you details for paying X extra per month?

I've got about 6 loans or so with different payoff times and interest rates. My general strategy is to calculate how much I'd save by paying an extra X per month, always directed towards the loan with ...
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3answers
244 views

Paying off credit cards

I am 72 years old and had to stop working three months ago. Total retirement income is 3200.00 a month. I am paying most of that to credit cards, mine and my wife's. Also have a 712.00 house payment. ...
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2answers
1k views

How can I get out of the debt-trap as quickly as possible?

I have a credit card with 30% interest and a real estate loan with 11% interest. The amount of debt on my card is lower than the real estate loan. I want to redeem the installments of the real ...
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2answers
466 views

Someone please help with my credit situation

I sincerely hope someone can help. My credit score is ridiculously low. It's 538. My payment history is 98%. I do have a couple collection items...but my credit has been way higher...around 660, with ...
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2answers
890 views

Is it a good idea for me to divert savings to pay off my debt?

I own a car which I had bought under desperation and stupidly agreed to pay a high interest rate (8%). Recently, I used money from my line of credit, which was at 6%, to pay off my car loan. Now I ...
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3answers
749 views

Should I buy ~$2200 of a hot stock or invest elsewhere?

Right now I'm 23, decent job ($50k/yr), about $6k in the bank, and about $50k in debt (car loan, student loan, no credit card debt or other 'high interest' debt). I'm about to start putting roughly 8-...
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1answer
319 views

Is it possible to use part of my pension to pay loans, or to opt out of the pension scheme altogether for a few years until my loans are paid?

I have so far worked in Singapore, Norway, and now in the UK. My knowledge about pension scheme in general is very limited. What I only know is that part of my gross salary goes to tax and part of it ...
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1answer
361 views

Student Loan Balance question

My wife and I have recently paid off our auto loans and are trying to tackle our pesky student loan debt next. Following the "debt snowball" pattern, we've applied our monthly car loan payment to my ...
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3answers
267 views

Student loan vs selling one property

Thank you in advance for taking the time to click on my post and for your input. I will try to get into my question in short sentences My income is just over 100k a year. My wife is in school and ...
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2answers
275 views

Overpaying or look to pay off mortgage

I have a mortgage that 10years fixed at 2.75%. the remaining balance is about 70k and the monthly repayments are $1135. I got it it in 2015 and I'll pay it off by 2025. I have about $45k in savings ...
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2answers
319 views

Should I invest or repay my debts?

I work in an IT firm company with an average 10% annual hike. Currently I save around 35,000 rupees per month. My family has a debt of 19,00,000 rupees. For the next 5 years I do not have any major ...
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1answer
255 views

Put extra payments towards almost paid off house or newer house?

My wife and I have two houses: one her parents live in and has only 4.5 years of mortgage payments left, the other we live in and is only 2 years into a 30 year mortgage. She has been making extra ...
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2answers
172 views

30 yr mortg + IRA/stock market, OR 15yr mtg then 15 yrs IRA/stocks

I'm planning to refinance the mortgage given the low rates these days. Need to make a choice between a 30 yr fixed and a 15 or 20 yr fixed. Monthly household budget can accommodate any of the mortgage ...
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1answer
150 views

Borrowing money from 401k retirement plan to pay credit card bills? [duplicate]

I have some credit card debt that I would like to pay off. I feel like I am throwing money away on the interest charges each month. I was curious to know if taking a loan from my 401k to pay off my ...
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1answer
196 views

What's The Best Way To Pay Off My Collections?

I have a poor credit score, 597 to be exact. I'm 23 years old and looking to purchase a car but of course I want to get my finances in order. The only 2 major hits I have on my credit reports are from ...
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1answer
351 views

401K loan repayment Default

I have a 29,000.00 loan from my 401K That I am paying 800.00 per month on. My wife has been ill for 2.5 years and unable to work. Currently trying to get disability. However this has created a big ...
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1answer
920 views

Using IRA to pay off federal parent plus student loans

I have $165,000 in my IRA which I'm really wanting to avoid using, but am seriously considering withdrawing or taking it all from this IRA to pay down my parent plus student loans. I am 58 yrs old I ...
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1answer
671 views

Should I cash out retirement accounts to pay off student loan debt?

I have an opportunity to cash out my retirement. I have a student loan owing approx $180,000 for medical education. This loan acquires interest daily and I have been unable to get from under this ...
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1answer
475 views

Applying additional student loan payments directly to principal while on a income-based repayment plan

My sister has a federal student loan with a total balance of about 60K and an interest rate of 6%. Her income isn't high so she's eligible for an income based repayment plan with a monthly payment of ...
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1answer
379 views

Does using savings to pay off debt in bulk look bad on one's credit report?

I have my house deposit, which is pretty much exactly the amount of debt I am in. If I pay off all my debt in one hit, will it look bad on my credit report, or if a bank looks at it and thinks a ...
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2answers
135 views

Interest or APR Query

I have really bad credit from when I was younger. The only credit card I can get is one 49.9% APR. If I spend £500 in a single transaction and pay back lets say £50 a month, what interest would I be ...
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3answers
2k views

Car Loan upside down--refinance before selling?

I have a 2007 mini cooper that I bought for around 20K 3 years ago with CarMax. I currently owe about 10K but the blue book value is around 6K. I am starting a new job where I will be traveling 70% of ...
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1answer
482 views

Navient Student Loans

I am planning on putting an additional $6,000 to my student loans through Navient. I am trying to decide which option is better. I can put $6,000 to the lower total $13,550 with a 9% interest rate or ...
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1answer
394 views

Pros and cons of cashing out my RRSP in order to repay HELOC used to start a business, now failed?

I'm in my mid 40s and a few years ago I used my HELOC to start a new business. I was paying interest only on the loan in hopes of paying off the HELOC in lump sum amounts once the business was ...
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3answers
342 views

How to get out of short-term loans?

I have about 15 small loans ranging in between 4k-10k in local currency, with most being 4k or under. Besides this, I'm currently paying 56k in local currency for a house (I can't cancel/pause this ...
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1answer
2k views

Can my company buy my personal debt?

I owe $50,000 to my mother and father, who have helped me consolidate my debt over the years. Can my business buy my debt from my parents for the full amount I owe and then forgive me from having to ...
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3answers
228 views

Reasons to invest in 401k vs pay off loan in 1 year?

I have ~$70k across 401k and Roth IRA. I have federal student loan at $17k with 3.8%. Thus, my NW is $53k. If I choose to invest $19k into my 401k and assume the average rate of return of 7%, my 401k ...