329
votes
Accepted
Who can truly afford luxury cars?
There's an aspect to this question that I really love. In general, it's a question about consumer behavior that can be expanded to inquire about the purchasing profile of any luxury good. Who buys $...
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 ...
- 21.8k
241
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 ...
- 20.8k
183
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 ...
- 3,933
176
votes
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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 ...
- 75k
173
votes
Who can truly afford luxury cars?
A while back, I sold cars for a living. Over the course of 4 years ,I worked for 3 different dealerships. I sold new cars at two and used cars at the last one.
When selling new cars, I found that ...
- 2,803
170
votes
Who can truly afford luxury cars?
How can people afford luxury cars? The same way they can afford anything: by finding it cheaply, saving for it, or adjusting their priorities.
Company cars - either paid for by the company, or as ...
- 1,987
164
votes
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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 ...
- 115k
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 ...
- 9,192
137
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 ...
- 115k
134
votes
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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 ...
- 49k
121
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 ...
- 6,228
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 ...
- 48.6k
110
votes
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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 ...
- 49k
109
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 ...
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 ...
- 1,502
94
votes
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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/...
- 64.6k
88
votes
Who can truly afford luxury cars?
Keep in mind your household income is in the top 20%, which does not translate to wealth. Given a healthy income, and no debt, other then a small house payment, you probably have a decent amount of ...
- 75k
87
votes
Should I pay off a 0% car loan?
Between now and October, your $3,000 will earn $30 in your savings account.
If you are late on a payment for your 0% loan, your interest rate will skyrocket. In my opinion, the risk is just not ...
87
votes
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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 ...
- 38.1k
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 ...
- 64.6k
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 ...
- 21.2k
84
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 ...
- 23.8k
83
votes
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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 ...
- 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 ...
- 75k
75
votes
Accepted
Cash in retirement accounts to buy a house?
It is normally a bad idea to cash in retirement accounts to buy a house, in your case it is a horrible idea because you are way behind on saving for retirement.
Other fallacies in your reasoning:
...
- 51.6k
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 ...
- 32.5k
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%, ...
- 64.6k
64
votes
Accepted
Why would anyone want to pay off their debts in a way other than "highest interest" first?
It is true that all else being equal, you will pay a lower amount of total interest by paying down your highest interest rate debts first. However, all else is not always equal. I'm going to try to ...
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 ...
- 7,845
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