Hot answers tagged

94

They want to gauge the chance of a successful sale. There's nothing quite as frustrating when selling and moving to a new home as getting into escrow, doing all the paperwork, crossing off all the check lists, only to find out that your buyer didn't qualify for the loan and the mortgage fell through. By asking about your down payment (20% or more is often ...


73

The Federal Reserve website notes that creditors must accept cash for debts on services already rendered, but that businesses may refuse cash for services not yet rendered unless prohibited by local law. The Treasury website includes examples of businesses limiting what cash they will accept: For example, a bus line may prohibit payment of fares in ...


54

I found the study "The irrationality of payment behaviour" accidentally while searching on the term "DNB Study" instead of "D&B Study". This study, which, when I followed the link, went to the web site dnb.nl (Dutch National Bank), instead of dnb.com (Dun & Bradstreet). It mentions all the salient points that I hear Dave Ramsey and others mention ...


52

The dealer makes money on the loan. The amount depends on the relationship between the dealer and the finance company. Basically, you getting a loan increases the dealer's commission and so you can indeed negotiate a lower price. The dealer may also have incentives to close x number of loans per month, so he could have additional motivations. He's probably ...


48

The US Customs and Border Protection website states that there is no limit to the amount of currency that can be brought into or taken out of the US. There is no limit on the amount of money that can be taken out of or brought into the United States. However, if a person or persons traveling together and filing a joint declaration (CBP Form 6059-B) have ...


46

Have you considered contacting the debtor directly and offering them a cash settlement? If they have any money set aside, they may be minded to accept a discount in return for giving you a lump sum. Instead of accepting pennies in the dollar from a "settlement services" company, you could end up gaining a much bigger chunk. Dear Debtor, As you have ...


42

Nope. Or at least, if it were possible the company offering such a credit card would quickly go out of business. Credit card companies make money off of fees from the merchants the user is buying from and from the users themselves. If they charged no fees to the user on cash advances and, in fact, gave a 3% back on cash advances, then it would be possible ...


42

I'd like to know if there is any reliable research on the subject. Intuitively, this must be true, no? Is it? First, is it even possible to discover the correlation, if one exists? Dave Ramsey is a proponent of "Proven study that shows you will spend 10% more on a credit card than with cash." Of course, he suggests that the study came from an otherwise ...


38

Since all the other answers thus far seem to downplay the risk (likelihood) of the money being seized, I figure I may as well make my comment an answer. Unless you happen to have your legal team travelling with you and your suitcase of cash, you should expect that you'll be questioned extensively, so that any sign of nervousness, inconsistency in your ...


29

Holding pure cash is a problem for 401K companies because they would then have follow banking rules because they would be holding your cash on their balance sheets. They don't want to be in that business. Instead, they should offer at least one option as a cash equivalent - a money market fund. This way the money is held by the fund, not by 401K ...


27

The risk is that you are installing software on your browser than can see everything you do. Which means they can get all your credit card and banking information, they can capture all your logins, and they can send your browsing history back to a central site. The ability to change the data means that they can also inject additional advertisements into ...


26

Money laundering alarms would definitely be raised, way before you walking in with the cash to deposit. Every cash transaction over $10K will be reported by the bank (and not only banks have to report), so the report will be sent when you withdraw the money, as well. But if the money is legitimately yours and you can show the sources, then you shouldn't be ...


26

Psychology Today had an interesting article from July 11, 2016, in which they go through the psychological aspects of using cash vs. a credit card. This article cites a 2008 paper in the Journal of Experimental Psychology: Applied that found: “the more transparent the payment outflow, the greater the aversion to spending or higher the ‘pain of paying’ …...


23

Your practice of waiting until you can pay cash is a good one. It will certainly prevent you from getting into debt! Now, to be clear, your question puts a credit card in the same category as a loan, but it doesn't have to be. You could use a credit card almost like cash, if you are careful. I'm not familiar with the system in France, but in the US, even ...


22

Ideally you would negotiate a car price without ever mentioning: your intentions around financing whether or not you work for the car company whether you've recently graduated any trade-in you might be bringing or lease you need to get out of And other factors that affect the price. You and the dealer would then negotiate a true price for the car, followed ...


22

The $10,000 mark is not a ceiling in importing cash, but rather a point where an additional declaration needs to be made (Customs Form 4790). At 1 million, I suspect you might be in for a bit of an interview and delay. Here's an explanation of what happens when the declaration isn't made: https://www.cbp.gov/newsroom/local-media-release/failure-declare-...


22

You must define what you mean better in order to answer this question. To me, buying with credit cards is virtually always better because my credit cards maximize my wealth (they offer cash-back, they provide security, they delay my payment, and I never pay interest on them). For you it may or may not be better in this sense depending on the discount ...


21

Others have commented on the various studies. If, as JoeTaxpayer says, this one particular study he mentions does not really exist, there are plenty of others. (And in that case: Did someone blatantly lie to prove a bogus point? Or did someone just get the name of the organization that did the study wrong, like it was really somebody called "B&D", they ...


20

In addition to the money-laundering, lifestyle, income tax, etc issues discussed already in other answers, one other matter that might concern the bank is whether that cash you are bringing in to deposit is genuine currency or (some or all of) the bills are counterfeit and you are using this mechanism to get them into circulation. Even if you withdraw ...


20

Once you declare the amount, the CBP officials will ask you the source and purpose of funds. You must be able to demonstrate that the source of funds is legitimate and not the proceeds of crime and it is not for the purposes of financing terrorism. Once they have determined that the source and purpose is legitimate, they will take you to a private room ...


19

Yes you tell them. I can say that I pay cash for all my cars and always get cars for lower than the TrueCar low-end. There are basically two steps: go test drive, negotiate fully, leave (unless you are given a mind-blowing offer). This may take you one to many dealerships. It depends on how well you know what car you want and how much a dealership will ...


19

If the appraisal is less than the purchase price and the down payment is small, the bank might not approve the mortgage.


18

You have to take legal tender to settle a debt. If your business model doesn't involve the customer incurring a debt that is then settled, you don't have to take cash. For example, in a restaurant where you pay after eating, you can insist on paying cash, because you're settling a debt. But in McDonald's they can refuse your cash at the counter, because you'...


18

It's not necessarily a scam. I've used several of those types of services to different degrees of success. Just be sure to only use a reputable service. They make money by essentially acting as a referral to the site you're shopping through. They get a commission from the site you're purchasing through and pass a small portion of that commission back to you ...


17

Am I right to worry about both of these? Of course. Who carries $75K in cash for no good reason? Your friend got the cash from somewhere, didn't he? If its legit - there's paper trail to show. Same for your parents. If you/they can show the legit paper trail - there's nothing to worry about, the hassle, at worse, is a couple of letters to the IRS. If the ...


17

Coming from an area that is hurricane prone, and seeing what happens to local businesses during evacuations/power outages/gas shortages, I think what you already have on hand should be sufficient. And it sounds like that's exactly what you're budgeting for. I'd say 2 weeks worth of fuel and food costs, with the budget for each in line with riding out a ...


16

This will probably require some explanation from you on the source of the money and the reasons for the transaction. Cash transactions over $10k will be reported by the bank (in this case) on a CTR report to FinCEN. Keep in mind, mere breaking the transaction into multiple smaller ones in order to avoid the CTR is on its own a criminal offense. Just deposit ...


16

You need to have them consult with a financial adviser that has a focus on issues for seniors. This is because they are beyond the saving for retirement phase and are now in the making-their-money-last phase. They also have issues related to health insurance, IRA RMDs, long term care insurance. The adviser will need to review what they have and determine ...


16

Let me guess, it's a fairly large amount of money, a few thousand at least. This is a scam. This is a variation on the many fake check scams out there. You deposit the check and you think it "cleared" your bank, but it didn't clear. A clever fake check can take a couple weeks to bounce and the bank will demand the money back. Any money you wire back to the ...


16

I won't list a specific one here, but there are tons of structured settlement companies that will buy your settlement agreement at a discounted price. You have probably see tons of these ads on daytime tv. I have never needed this type of service, but I can quote the phone number from memory because of those dang catchy jingles. I suggest Googling "...


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