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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.

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2answers
140 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
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0answers
47 views

Merging company hidden debt [closed]

One business partner does not disclose bad debt in a corporation before merging with another. Once it was noticed in the pre-existing books six months later, the merging company wrote it off as bad ...
65
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11answers
17k 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 ...
0
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1answer
235 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
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3answers
77 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
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4answers
431 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? ...
7
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2answers
3k views

Should I cash out some of my retirement to pay credit card debt?

I'm very recently divorced and have accumulated the following credit card debt, both during my marriage and during my separation, when I struggled to get by while paying both a mortgage and rent on my ...
2
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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 ...
4
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2answers
4k views

can someone else put up the collateral for a loan?

We were talking today at work and I am curious... Say an individual (Mary) is looking at a 20k bank loan. Mary has no assets to secure the loan. Could some else (Joe) (parent, friend, sibling,whoever) ...
20
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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), ...
245
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18answers
96k views

Who can truly afford luxury cars?

I never really thought about money until one day I checked how much I made compared to the rest of America. The calculator said my household income is in the top 20%. Kind of funny to me, because I ...
3
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1answer
161 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
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1answer
254 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 ...
25
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6answers
11k 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
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0answers
25 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 ...
8
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2answers
3k views

Buying house on a loan when you're just starting a career

I am 25 year old Indian in the beginning of my career i.e this is my second year after entering the workforce. I am working in Japan. My salary does not leave much extra after my personal ...
3
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5answers
546 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 ...
0
votes
2answers
119 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 ...
2
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1answer
164 views

How safe are liquid funds?

This question pertains to India. Have liquid funds ever suspended or limited redemptions? Or, worse, gone bankrupt? What has been the worst fall in value any investor in a liquid fund has faced? ...
44
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
2answers
740 views

Should I pay off my student loan in the UK before getting a mortgage?

I've had a search around and there is a similar question here and maybe here. However, I think this use-case is slightly different (not to mention those answers are US based), and also the answer to ...
2
votes
1answer
180 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 ...
17
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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 ...
4
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2answers
428 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 ...
6
votes
5answers
305 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 ...
0
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3answers
134 views

collateralized mortgage obligations

I was reading a comparative description in between CDO's and CMO's on Investopedia.com and I cant seem to understand the following statement: When the mortgages underlying a CMO are of poor credit ...
0
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1answer
75 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 ...
6
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5answers
1k views

How can people have such high credit card debts?

Apparently, the average US household has US$16000 in credit card debt, with even college graduates having US$2000 by the time they graduate. In Canada, this figure is almost CA$27000. For comparison,...
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
211 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 ...
2
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3answers
2k views

If I moved abroad, what happens to the U.S. apartment lease I'd be breaking? Would a debt follow?

I'm moving to the United Kingdom. What will happened to my apartment lease here in the United States? Will that debt follow me?
9
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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,...
4
votes
3answers
390 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
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7answers
529 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 ...
66
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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 ...
-1
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1answer
122 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 ...
34
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4answers
4k views

Should I invest when in debt?

I have just consolidated my debt and am thinking where I want to be in the future. My payment plan is to be debt-free in three years. It is not an extremely aggressive plan; I still want to have a ...
2
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1answer
881 views

Pay Off Unsubsidized Loan with Subsidized Loan?

I'm currently sitting at about $14,000 USD in loan debt, and am still enrolled at university. I will estimate about $10,000 is unsubsidized, making the remaining $4,000 subsidized. I was fortunate ...
4
votes
2answers
428 views

Should I consolidate loans and cards, or just cards, leaving multiple loans?

I will start off by saying that I suck with credit cards. I just can't manage them, and if I have access to them, I end up impulse spending money. I should not need to; I earn great money, but I seem ...
11
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3answers
759 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 ...
5
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1answer
200 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 ...
1
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5answers
473 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 ...
0
votes
1answer
107 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 ...
0
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1answer
117 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
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0answers
19 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 ...
2
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0answers
128 views

What happens to debt to SSA after death?

A woman in another country was married to her late husband. She notified about his death right away but SSA kept sending money from his Social Security benefits. She thought that everything was in ...
1
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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 ...
3
votes
1answer
261 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 ...