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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5
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4answers
446 views

What happens to consumer debt if a country defaults on its debt?

What happens to consumer debt if a country defaults on its debt? Also, how will a debt default by a country affect government-backed loans such as mortgages and student loans?
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360 views

Is it totally legal to refuse the payment of mature commercial paper debt?

I was reading up about commercial paper on investopedia. It says that commercial paper is a form of short-term unsecured debt. It then goes on to say that Commercial paper is not usually backed ...
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What I can possibly do about the future once my student loans are paid off and I have no savings?

I attended a private institution in the USA for higher education and as a result I pay monthly student loan payments so expensive they rival my rent payments. I try not to think very hard about this ...
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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 ...
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4answers
7k views

How to pay bills for one month while waiting for new job?

I recently, and unexpectedly, lost my job. Because I had summers off (no paychecks either), I've been using my credit cards for most purchases, saving what cash I had saved from the previous year to ...
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2answers
180 views

Does there exist a kind of loan where no part of principal is paid, while interest is still paid?

I know that when debt is being re-paid, one pays interests along with repayment of some parts of debt principal. However, I am wondering a case where no part of debt principal is re-paid while ...
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5answers
367 views

What to do when institutions stopped lending you money?

I know the question seems confusing, but this is a real life event. My friend lived beyond his means for a few years, combined with half year of unemployment his Credit Card Debt went to the roof. ...
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4answers
551 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? ...
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233 views

Is debt almost always the cause of crashes and recessions?

It seems every great crash, the underlying fundamentals always point to an ever increasing debt until it becomes unsustainable and bursts. How true would you say is that statement above?
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3answers
729 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 ...
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2answers
390 views

How would a collection against me affect my credit

I went to a new city two weeks ago and rented a 2011 Civic in the meantime. On the last week of the rental, someone hit my car in the front bumper in a parking lot. The damage was a 2 by 3 inch dent ...
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3answers
897 views

Paying off student loan or using that money for a downpayment on a house

I am 22 years old, I live in Atlanta, Georgia and I am a recent graduate. I approximately owe 22,000 dollars in student debt (all federal student loans at a fixed rate). My job pays me around 50,000 ...
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1answer
1k views

Can the IRS freeze a business Bank account?

My credit score is really bad, it used to be in the high 700s but is now about as bad as you can imagine. I owe a lot of debt including IRS, credit cards, banks, loans, etc. I now need to start a ...
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1answer
327 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 ...
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3answers
206 views

Extended family investment or pay debt and save

I'm 25 and my wife is 24. My extended family is about to start a new investment fund, where every member basically contributes an amount between $50-$100 (amount per person) monthly. The purpose is to ...
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1answer
346 views

Should I save for my children's university education in Canada, or am I better off paying off loans and gaining debt room?

Looking at the financial aid system in Canada, it seems that significantly more aid is available for those who do not have savings or lack the ability to directly pay for their education. As a member ...
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103 views

Putting debt out long when interest rates are low?

This is something I heard once from a caller on a financial radio program. What does it mean and what is the logic behind this statement?
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2answers
179 views

When applying for a mortgage, can it also cover outstanding debts?

When applying for a mortgage, can you also add some extra on (£10k) to cover car finance? Or is there any benefit of keeping them separate?
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2answers
310 views

Any US Gov program for under water mortgages when still making payments?

I am trying to help out one of my friends that is in a financial bind. Several years ago he purchased a house because he could build up more value then if he kept renting. At the time it looked like ...
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1answer
289 views

Grad student - Pull money from 401k, or get student loan?

I went back to school after a few years in industry. The PhD has a stipend, but it doesn't quite go far enough. I'm dipping into savings each month. I'm looking for a little extra cushion. I have a ...
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1answer
496 views

Can I pay a collection agency in a way that will improve my credit score?

Finally, I've got cash in the bank. But this comes after a few years of building up a credit card debt of about $5,000 and not paying it off. A collection agency has come after me. I'm sure my ...
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2answers
177 views

Under which conditions does it make sense for a Canadian investor to put their mortgage in their RRSP?

Canada allows investors to use their retirement fundings (RRSPs) as part of a loan to themselves, which can fund the buying of a house. When does it make sense to take advantage of this?
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What debts are both partners liable for in a 'community property' state?

I've just come across this article over on the mintlife blog and noticed that I do live in one of the ten community property states. I'm not overly familiar with this particular concept (keep in mind ...
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1answer
889 views

How to Dispute a Medical Bill that Went to Collections

I had a 2-hour ER visit for a biking accident at an out-of-network location in 2014, and provided the insurance information at check-in. Four months later the hospital and the doctors (charging ...
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2answers
1k views

How can someone with a new job but no credit history get a loan to settle another debt?

I was recently hit with a large personal debt, something that can't go against my credit score, but might if it ever went to court/collections. However, it came unexpectedly, and I am now looking for ...
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1answer
210 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 ...
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6answers
22k views

Is it better to spread debt out on multiple credit cards or consolidate it to just a few?

Is it better to spread out my credit card debt so that each of my cards is at around 30% of my limit or is it better to consolidate it all to just one or two cards even if these end up being at close ...
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“Pay to Delete” letter for removing an entry from my credit report. Legit?

I am negotiating with a collection agency over payment of around $2500. Talking on the phone with them, it seems that I can't get an unequivocal "yes" to delete their entry from my credit report on ...
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4answers
400 views

What to do with this cash- pay off ONE card, or pay down a few?

I've got a $5k payment coming through with about $12k in CC debt, over 4 cards. 1 card is at $3000 (total line is $4k), 14.8% interest rate, another at $3450(total line is 4.5k), 19.3% interest rate, ...
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2answers
433 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 ...
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510 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 ...
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2answers
4k views

Does paying off a car loan increase or reduce a persons credit score?

I know that closing credit card accounts reduces the number of open credit lines, and paying off a car loan would also reduce the number of credit lines. I have had the car loan for over 3 years, it ...
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596 views

Repaying Debt and Saving - Difficult Situation

I apologize ahead of time if this is too simple a matter for this Stack Exchange. My mother has been in a sticky financial situation for a while now, and I was hoping to get a little bit of help, and ...
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2answers
3k views

How can I build up my credit history when I have nearly none

I am trying to build up my credit, but I'm not sure how to. Currently, I only have 2 minor things on my report. Both are not necessary good. I owe $75 to a company(which I plan on paying now that I ...
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3answers
1k views

Debt Consolidation, trade down car, or both?

I'm a recent graduate, working full time (started in January). I have an average of 21.318% APR across 5 credit cards with a debt totaling $11,137, at $302 monthly min. CC #1: $2493 at 13.4%, $62 ...
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2answers
190 views

Taxes on debts forgiven in a record TV giveaway

Last night, John Oliver shattered the record for biggest TV giveaway in history, giving nearly 9000 people nearly $15M in forgiven medical debts. When Oprah gave away cars in the previous record ...
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1answer
832 views

How long does it take to have no credit history?

In considering my 5-10-20 year goals recently, one of them is to not use debt - whether credit card, mortgage, car loan, etc - even on a monthly basis. I currently am young, single, and have no debt ...
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1answer
813 views

How to interpret this paragraph from a credit card company

A credit card company has sent me an offer of a balance transfer with 0% interest until November 2017. Their Q&A section has this question: Q: If I take advantage of this offer, will it affect ...
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3answers
365 views

How could USA defaulting on its public debt influence the stock/bond market?

Ok, let's face it... US public debt is high and people are starting to wonder if the country might default on its debts. How would this hit United States' stock market, its bonds, or its currency? ...
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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 ...
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1answer
186 views

College Debt/Collections

I graduated from a community college in Alabama 10 years ago on scholarship. I receive a call from an attorney a few months ago regarding unpaid tuition/fees from this particular college.He is ...
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2answers
729 views

How can I manage my Credit Card Debt in Australia?

35K in credit card debt and personal debt (17K Credit Card 16% interest rate, 18K Personal Debt,Variable Rate 5yrs & 8mths remaining). I used the advice in Battling the credit car debt in ...
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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, ...
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2answers
5k 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) ...
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5k views

Can I draw funds from a personal line of credit to pay its own monthly “minimum payment”?

I can guess the answer to this question, but I can't figure out why. So here goes... I've got an unsecured line of credit with a limit $30,000. The annual interest rate is 6%, compounded daily. Every ...
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3answers
661 views

Trying to figure out my student loans

Please let me know if this is too much information/perhaps unsafe private information to reveal. I am trying to understand the finances behind this stuff and what I can do to get rid of my loans ...
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2answers
486 views

Are Americans in as much personal debt as the British? Are the sources of debt much different?

I recently came across an interactive infographic for the U.K. about personal indebtedness and was shocked at many of the stats in regards to personal debt — e.g. the UK national average ...
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1answer
468 views

Payday lender took all my money

I have foolishly taken out several loans from 'payday lenders' which escalated into me paying off loans with other loans and I am now trying to dig myself out of that hole. I am in Scotland. I have ...
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1answer
187 views

Using a line of credit for long-term investing

I have recently opened an unsecured line of credit for $20k at 1%. I have a savings account at the same institution making 1.5% - both compounded daily and paid monthly. I've read a few questions on ...
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3answers
735 views

High credit utilization, some high interest - but credit score not overly bad. How to attack debt in this situation?

I presently have: Credit Card, £2250 balance, interest rate of 17.43% Credit Card, £1500 balance, interest rate of 39.9% (3.5% min payment) Credit Card, £2400, interest rate of 34% Overdraft of £1300 ...