Skip to main content
324 votes
Accepted

My friend wants to put my name down for a house he's buying. What risks would I be taking?

That "something" you are signing means you are liable for the mortgage payments - yes, all of them - if he can't or won't pay at any point. The limit on what the bank will lend him based on ...
Vicky's user avatar
  • 24.1k
240 votes
Accepted

Should I take out a loan to pay off a relative's credit card debt?

This is a very generous impulse on your part. I'm going to criticize it, but please understand that I believe your intentions are great. What can go wrong You pay off her $40,000 debt. She is ...
Brythan's user avatar
  • 21k
185 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

What are the risks, if any The risks are exemplified by the outcomes presented on this website, including: What can I do when the co-signer hasn't paid anything on the house in 7 years and now ...
RedGrittyBrick's user avatar
176 votes
Accepted

How to deal with the credit card debt from family member that has passed away?

Don't pay it, see a lawyer. Given your comment, it will depend on the jurisdiction on the passing of the house and the presence of a will or lack thereof. In some states all the assets will be ...
Pete B.'s user avatar
  • 77.2k
164 votes
Accepted

Can I become debt free or should I file for bankruptcy? How do I manage my debt and finances?

Can I be debt free or should I file bankruptcy There's no reason to file bankruptcy with $64k in debt and a $80K net salary. You can get out of debt in 1-2 years if you're willing to sacrifice. The ...
D Stanley's user avatar
  • 138k
141 votes

Urgently need pre-paid debit card to pay debt collector

This sounds like a scam. The debt itself may be legitimate but the debt collector doesn’t sound legitimate. Legitimate businesses would never need access to your bank account. If you have the funds ...
Lawrence's user avatar
  • 9,392
139 votes

How is early-and-often home buying as "get rich" advice feasible?

How do you buy 1 house a year? You save up the money you make from the rent for a down payment on the next house. Then you save up the money from those two houses and buy two more the next year (or ...
D Stanley's user avatar
  • 138k
133 votes
Accepted

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

Should I take out a personal loan to pay off credit card debt? Yes. 8% is much lower than 18%, so you'll save money. Anything I'm missing or should look out for? You might be missing the reason ...
RonJohn's user avatar
  • 50.7k
122 votes

Can I become debt free or should I file for bankruptcy? How do I manage my debt and finances?

You need to change the way you think. First, understand compounding. Not just intellectually, but viscerally. You need to develop an aversion to spending borrowed money. A debt with 22% APR ...
Ben Voigt's user avatar
  • 6,788
116 votes

Should I take out a loan to pay off a relative's credit card debt?

I personally have no financial problems Are you in desperate need of a financial problem? Taking a loan to pay someone else's debt is the fast lane to a financial problem. Unless this is your ...
quid's user avatar
  • 49k
110 votes
Accepted

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

EDITED after OP added more details. no taxes have been taken out yet. 24% will probably be withheld, taking you down to 38K. The organization that ran the sweepstakes must withhold 24%. It's the ...
RonJohn's user avatar
  • 50.7k
108 votes

Pay off Credit Card Debt now or later

You are conflating issues. You made a charge on a credit card. You have the money, earning near-zero interest, but are wondering whether you should use that money to pay a (presumably) high interest ...
JTP - Apologise to Monica's user avatar
96 votes

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

Some folks have touched on this, but I wanted to make sure I emphasize this. Getting a college degree does not require going into massive debt. In fact it doesn't require debt at all. Here are some ...
Ogre Psalm33's user avatar
  • 1,517
95 votes
Accepted

How can I prepare for my US student debt?

But what should I be expecting? How much trouble am I in? If you graduated with $134,181 in loans at a rate of 9.3% you'd expect a repayment amount of $1,722/month for 10 years. If you make $70,000/...
Hart CO's user avatar
  • 70.6k
85 votes
Accepted

Multiple loans, multiple payers - how to snowball fairly

First off, your commitment to paying down debt and apparent strong relationship with your brother is admirable. However, I think you are overcomplicating your situation and potentially endangering ...
Grade 'Eh' Bacon's user avatar
85 votes
Accepted

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

Your friend is basically doing "Credit Card Kiting". While not strictly illegal* (there are nuances), it's an expensive way to maintain debt. Your friend would be much better off taking the time to ...
Rocky's user avatar
  • 24.2k
85 votes

If a bank fails, will debt be wiped out?

No, your debt is an asset. In bankruptcy assets might be sold off (there are different flavors of bankruptcy and they don't all involve complete asset liquidation). Your debt would either remain with ...
Hart CO's user avatar
  • 70.6k
84 votes

Wife is cosigned on a credit card with her parents — real assets are also shared. How to protect my credit?

Is your name on your account at all? If yes, you go to the bank tomorrow morning, open an account in your name, and move all the money over. Then tell your company to change their payments to the new ...
gnasher729's user avatar
  • 23.4k
82 votes
Accepted

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

You really have only three options (leaving out somehow legally forcing them to pay, about which I know nothing). I'm also assuming you're in the US. Somehow get enough in scholarships and grants to ...
jamesqf's user avatar
  • 11.1k
79 votes

How can I prepare for my US student debt?

IMHO, you made a very poor choice with school selection. When we make poor choices as adults we have to write checks to solve those problems. Yours is one that will cost you well over 140K, and ...
Pete B.'s user avatar
  • 77.2k
73 votes
Accepted

In what cases can a business refuse to take cash?

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 ...
NL - SE listen to your users's user avatar
73 votes
Accepted

Should I pay myself back for paying family's rent out of our pool of money?

David Schwartz's answer is great, I just wanted to add that since you have credit card debt, that $1,500 in rent could cost you a lot more due to interest. Average credit card interest rate is ~16%, ...
Hart CO's user avatar
  • 70.6k
63 votes

Why would a lien appear on a mortgage after 17 years?

RocketLawyer has a brief review of how to place a lien. Searching Money.SE for 'lien' may also turn up some helpful information for similar situations. You should exercise extreme caution when ...
Freiheit's user avatar
  • 8,772
63 votes

Should I take out a loan to pay off a relative's credit card debt?

First, you loaning her money is out of the question. In my sternest Suze Orman voice, You Will Not. Money is more intimate than sex, and there is a very wide gulf between "listening to her ...
Harper - Reinstate Monica's user avatar
62 votes

Bill payee can't find my payment and threatens debt recovery action

Find a name To escalate, you don't want a random helpdesk - you want a name. In this case, I'd suggest googling "finance director (this university name)". You can then ring the main ...
Graham's user avatar
  • 2,442
61 votes

How can I prepare for my US student debt?

You've been tricked into an inappropriate lifestyle And the student loan companies did it. Their motivation is the positively insane interest rates for loans which cannot be discharged in ...
Harper - Reinstate Monica's user avatar
61 votes
Accepted

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

I think the heart of the matter is that you're misinterpreting both what comprises a credit score in the US, and how they are used. This is evident in your second to last paragraph: A "credit score"...
dwizum's user avatar
  • 17k
58 votes

How to deal with the credit card debt from family member that has passed away?

First, when a debt collector says, "It's to your advantage to give me money now", I'd take that with a grain of salt. My ex-wife declared bankruptcy and when debt collectors couldn't find her, they ...
Jay's user avatar
  • 22.8k
58 votes

Why don't most people file Chapter 7 every 8 years?

You could get away with stealing some money doing this. However, there are mechanisms in place to limit the damage you could do. First, you need to have good credit in the first place before you will ...
Ben Miller's user avatar
  • 116k
54 votes

My friend wants to put my name down for a house he's buying. What risks would I be taking?

Wrong way round. Transitional arrangements are non-binding guidelines that the lenders can observe if they choose to. The borrower - like your friend - doesn't get to choose whether to use them or ...
gef05's user avatar
  • 6,981

Only top scored, non community-wiki answers of a minimum length are eligible