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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68
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 ...
20
votes
7answers
10k views

Charges from Dollar General have never shown up on my debit card. How can I resolve this?

During the summer of 2016 I lived by a Dollar General and went there about once a week. I only had a debit card then and paid for everything this way. DG was notable in that I never had to enter my ...
18
votes
5answers
5k views

Why is it good to borrow money to buy a house?

In most cases of purchases the general advice is to save the money and then make the purchase. Paying cash for a car is recommended over paying credit for example. For a house, getting a mortgage is ...
16
votes
2answers
4k views

Does the United States really owe 114 trillion dollars? Please explain “unfunded liability”?

I would like to refer to the site USdebt.Kleptocracy.us (A visualization of United States debt) I'm just a little bit curious as to what these figures mean. I understand the 1 trillion dollar ...
43
votes
10answers
4k views

How do I explain why debt on debt is bad to my brother?

My brother has about 5 loans that he paying back and he thinks that another 5000 loan will "solve his problem". He has been this way since he was young, he's now in his 30's. I'm trying to find a ...
45
votes
10answers
19k views

I won USD 50K! Now what should I do with it?

I won a sweepstakes and will be getting USD 50k...it is verified that it is legitimate although no taxes have been taken out so I will have to claim this income on my taxes next year, they will send a ...
3
votes
1answer
133 views

Student Loan Proof [closed]

I want to make donations to people with student loan debt. The method by which these people are chosen does not enable me to get to know each person on a personal level. How do I verify someone's ...
1
vote
4answers
144 views

Impact of Spending Cash/Debit vs Credit Card on Debt to Income Ratio

Since debt-to-income ratio (dti) is an important factor in determining one's creditworthiness especially for mortgage rates, it is clear that one should keep the monthly recurring debt and credit card ...
0
votes
1answer
156 views

U.S. Debt Law: What will/can repo people and banks take from you and when?

I know that this question has a lot of inherent complications, such as state laws and profitability for debtors, but I ask this because there are laws in place to protect people who owe money and I'm ...
0
votes
1answer
159 views

What should I do with extra bonus [duplicate]

I've recently been awarded a bonus of 6500 EUR (Net), What would be the best approach for me? Here is what my financial situation roughly looks like. 6200 EUR @ 4,95% (4291,63 still open) 29 months ...
44
votes
11answers
12k views

Should I take out a personal loan to pay off credit card debt?

My spouse and I have about 40K in credit card debt, in addition to a mortgage payment and student loans. We have been working hard to pay off this debt and have been moving in the right direction. ...
2
votes
1answer
202 views

Is the credit card system gamed against the Individual?

One of the things you keep hearing online is that credit cards are gamed against the individual. Is this true? is so, apart from paying off all charges before interest gets accrued, is there ...
0
votes
2answers
725 views

What does it mean to roll 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?
1
vote
2answers
122 views

Do negative bond yields pay out public debt?

I noticed that german bonds offer negative yields, as you can see in this table.My question is, considering Germany is returning less money than received, does that mean the sovereign debt is ...
2
votes
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 ...
70
votes
11answers
19k views

Shouldn't the “credit score” prevent Americans from going deeper and deeper into personal debt?

I'm not from the U.S but I know about the dreaded "credit score" that haunts Americans. I've seen a lot of documentaries and videos on YouTube with people that can't get a loan to buy a house because ...
0
votes
1answer
118 views

What happens with a credit card account in Germany after the card is blocked/closed?

I have an everyday account in a bank in Germany and a Visa credit card account in the same bank. At the end of each month the negative credit card balance is automatically balanced by an automated ...
2
votes
1answer
86 views

Risks involved in debt funds and recessions?

I have following questions related to various risks in debt funds: Are gilt funds safe during recession? I feel yes as they invest in government bonds, even though though they involve some inherent ...
41
votes
7answers
12k views

Is it legal to use cash pulled from a credit card to pay the monthly payment on that credit card?

I've got a buddy who is having problems with credit card debt. He had a small business go sour on him and ended up with about 35K of debt that's he struggling to keep under control while looking for ...
1
vote
1answer
85 views

US debt and its creditors [closed]

What does it mean when people say that China and others own US debt and are US creditors?
3
votes
5answers
349 views

Options to repay high interest credit card debt

I have about $14,000 in high interest credit card debt. I am curious as to the best options to attack this issue. CC1 - $9,500 @ 19% CC2 - $4,100 @ 21% I have about $8k in savings I am not willing ...
14
votes
6answers
5k views

Advice for paying off student loans and auto loans now that I have my first 'real' job

I'm hoping for some advice on which loans I should focus on paying off first. I'm 28 and just got my first 'real' job about 2 years ago after 8 years of schooling. I've paid off all my credit card ...
21
votes
8answers
7k views

Strategy to pay off revolving debt while building reserve savings fund?

We currently have about $16K cash. I'd like to have $30-35K+ for a ~6 month reserve. This will be a "single giant reserve fund" that will pay for large and/or unplanned expenses, frivolities like ...
4
votes
3answers
110 views

Why can convertible debts remove some risk?

After I read some articles on convertible debt, I have gained a lot of confusion. When the company (who issues the debt) is doing well, it's kind of like options. But when the company is doing bad, ...
4
votes
2answers
6k 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) ...
2
votes
3answers
273 views

Can you build credit history without getting a credit cards or taking on debt?

As far as I know I have no credit history as I have never had a loan or credit card. I buy things using a debit card tied to my credit union bank account and prefer not to have a credit card at all. I ...
1
vote
2answers
183 views

Which debt(s) to minimize first to improve credit most quickly?

Current score is ~650. Looking to improve my credit as effectively as possible, as I'm looking into houses after getting married next summer. I'm coming off of a tougher employment patch so very much ...
32
votes
7answers
15k views

How hard is it to sell a home which is currently mortgaged?

I'm looking to buy a house for the first time. I've done some homework, and from what I can tell... Buying a house via mortgage in Kentucky is somewhat cheaper than renting an apartment. I need to ...
12
votes
3answers
5k views

Should I prioritize my 401(k) over my student loans?

Lately things have been a bit tight. Between student loan payments, my HSA, my 401(k) and bills my account balance isn't going up or down, its stagnant. I am wondering if I should decrease my savings ...
46
votes
25answers
20k views

My parents claim they cannot pay for my college education; what are my options?

I have divorced parents, one makes a lot more money than the other, but that one (who makes more money) claims due to court rulings he pays a lot of money to the other parent and that they are wasting ...
1
vote
3answers
384 views

Leaving USA with Credit Card debts

My girlfriend is a US-Spanish dual citizen. She has been racking up credit card debt. 60K (7 credit cards). She used to make payments for a long time but she just lost her job and can't anymore. I ...
4
votes
1answer
535 views

Investing in a Roth IRA with a Personal Loan?

Okay this might be a dumb question but here it goes. Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the ...
5
votes
5answers
6k views

Mortgage Due Date versus Late Payment Penalty - Can the loan company call me daily?

My mortgage is due on the 1st. I was told paying a week after the 1st to match my paychecks wouldn't be a problem. In fact each and every statement has a date where if I pay after that date, I owe a ...
5
votes
3answers
743 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 ...
2
votes
3answers
443 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
179 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 ...
266
votes
18answers
106k 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
votes
2answers
247 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 ...
1
vote
1answer
207 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. ...
1
vote
2answers
226 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
119 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
271 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
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 ...
2
votes
1answer
375 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 ...
0
votes
0answers
55 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 ...
6
votes
2answers
599 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
176 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
2answers
870 views

F-1 Visa expired - Unable to repay private student loan. What to do?

I was an F-1 student and I graduated with MBA from a top 15 B-school in 2016 and had taken a loan of $85000 (without co-signer). Since my H1B didn't kick in I was forced to quit my job and leave the ...
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 (...
2
votes
1answer
238 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 ...