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31

Reduce your loan. Currently, stocks are especially in United States rather highly valued. If you subtract taxes, you probably won't exceed 6% per year over 10 years. By reducing the loan, you are having an investment that guarantees 6% return. See your situation like this: you have an investment with 6% guaranteed return. Most people don't. Now invest in ...


25

Don't buy a condo, that would be kind of a horrible idea, even if you can qualify. If it was me, I would stick it in a boring savings account, something like Ally. Once you graduate, get settled in potentially a new location, I would use the money to pay off your student loan. Until then, the money becomes an insurance policy to make sure you have ...


10

Criteria would be the ability for him to ... see the remaining balance. For just the two of you, a shared Google spreadsheet is far and away the simplest path to satisfying this criterion, while dwizum's answer handles the other two. EDIT: presuming you aren't charging him interest, here's an example spreadsheet.


7

For example, for a 100.000 loan with a 10% interest, basic logic would imply that you have to pay back 110.000. No. The interest rate is usually given per year, so for each year I owe you 100,000, I owe you an additional 10,000. But I don't owe you the full 100,000 all time long. If I pay you 20,000 at the end of the first year (10,000 interest and 10,000 ...


5

In this case, it likely makes very little difference, assuming you have your emergency fund earning ~2% interest the difference between paying your car loan off now or monthly over 7 months is just a few dollars. Are you comfortable reducing your emergency fund by $3k now to save a bit of interest? If you lost your job tomorrow would that $3k reduction ...


4

One option is to talk to a local bank or credit union, and see if your plans would integrate well into their online banking tools. You may be able to kill two birds with one stone - get him on a plan to pay you back, and also get him some exposure to "real" banking tools. For instance, my credit union has a tool in our online banking platform that lets you ...


4

I think you can safely pay it off. From your comment I see your emergency fund can cover 6 months of bills, and one of those bills is a car loan that you would no longer need to include in your emergency fund if you paid it off, so once you have 6 months or less remaining, then paying it off is mathematically correct if your interest rate is greater than 0%. ...


4

Let's keep it simple: The money is a gift to the couple from the WKP. No income tax should be owed by the couple. The WKP, however, would owe gift taxes at the very least, and perhaps would face investigation over what kind of income the money was to them before they gave it away. It's possible that if the WKP has an unpaid tax bill, the IRS could go after ...


3

The reason why you owe more than the car is worth is due to the long term of the loan. The longer the term the more likely you will be underwater. The used car price is dropping due to the age of the vehicle, not just due to the mileage of the vehicle. The lender will require you to pay off the loan completely when the vehicle is sold. The car is their ...


3

juhist has a good answer, but it's only part of a full answer. Saving You should save a couple thousand so you don't rack up credit card or other debt due to everyday living expenses plus unexpected bills. You don't want to go broke because of car repair, health care bills, or something else you might not be able to predict or prevent. What you make after ...


2

It almost always makes the most sense to borrow in your home currency. The reason that there are different interest rates is because there are different inflation expectations. In this case, a lower EUR interest rate means that inflation is expected to be lower in Europe over time than the US. So let's look at it from a US homeowner's perspective. They are ...


2

We don't have enough info for this specific situation, but here's a checklist to follow: Emergency fund Depending on the difficulty of finding a job, save 3-6 months of living expenses. High-interest debt Credit cards, personal loans, anything over 10% APR needs to be reconciled immediately. Tax-advantaged accounts After high-interest debt, you should ...


2

My kids have asked me once or twice to cosign for something, and the answer is an absolute NO. Under no circumstances will I ever cosign for anyone. If you followed this site, there are plenty of questions from people who made the mistake of co-signing and suffering the consequences. Legally, there is no such thing as "co-signing". In reality, it means ...


2

You asked a slightly different version of this question on meta. For the sake of completeness, I'm going to largely answer this question by cutting and pasting material from that one. This is an interesting question because it allows for exploration of a larger topic: how do "the authorities" know the transaction had happened? Would the IRS, if they had any ...


2

The question conflates loans like bonds with loans like mortgages. A bond works like the example, borrow $100,000 and pay $10,000 in interest each year. At some point, the borrower has to pay off the $100,000. A mortgage is named such because the loan dies or ends (mort = root for death in romance languages). It is designed to have a constant payment ...


1

In a comment, you provided the following statement - which I feel is critical to understanding where your logic is breaking down (when compared to typical modern lending practices): You can stretch the repayments over multiple years and still keep the same amount The point you're missing is that interest is presented as a rate. It has a numerator and a ...


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