189 votes
Accepted

Spouse wants to pay all debt in a month but I don’t. Is this a good idea?

Split the difference. Keep $30K in the bank and pay $25K of loans now. Use your $4,300/month to pay the remainder of the loans over the next 6 months, and then use the following 6 months to replenish ...
NL - Apologize to Monica's user avatar
186 votes
Accepted

My friend cosigned for a defaulted loan. Should he declare Chapter 7 bankruptcy?

DON'T talk to the creditor. DON'T trash your other good credit. DON'T declare bankruptcy for a good while. The IRA is protected. Protect it. First and foremost, the IRA is untouchable in MD. ...
Harper - Reinstate Monica's user avatar
168 votes

How do I lend money to a friend for a car and put the car as collateral?

As a frame challenge to your question, consider that a deposit in your bank is essentially you giving a loan to the bank. Now the bank has money which they can loan to your friend! Yes, you're only ...
dwizum's user avatar
  • 17k
132 votes

I cosigned for a friend who is not paying the payment

Cosigning is explicitly a promise that you will make the payments if the primary signer can not. Don't do it unless you are able to handle the cost and trust the other party will "make you whole" when ...
keshlam's user avatar
  • 46.5k
121 votes
Accepted

Should I pay for a computer up-front or on finance?

This is pretty simple, and doesn’t require too much math. First, talk of liquidity is not necessary. You are currently paying $3000 extra on your mortgage every month. (Nice!) You certainly would ...
Ben Miller's user avatar
  • 116k
113 votes

I’m 18 years old and want to finance a £30,000 car

You are talking about spending about a third of all your money on a car and committing to do so for the next 4 years. As an 18 year-old you have a tidy disposable income and few expenses. But the ...
Mark Perryman's user avatar
113 votes

Why would a loan company deposit a small amount into my account and require I send it back?

What exactly is the "small amount" we're talking about here? It is pretty common when setting up a direct deposit to send one or two payments of < $1 and to ask the owner of the account ...
Justin Cave's user avatar
  • 27.3k
102 votes

Does a company have to have your login information to verify your identity?

No. Anyone who asks for your username and password is very likely a scammer. Access to id.me is especially valuable as it would allow the scammer to essentially steal your whole online identity. Make ...
littleadv's user avatar
  • 174k
100 votes
Accepted

Hypothetically, should I pay off the smaller + higher interest rate loan first, or the larger + higher absolute interest cost?

This is an interesting question. Many people would tell you to pay the highest interest rate loan first. There are many others who would tell you to pay off the smallest balance loan first. In your ...
Ben Miller's user avatar
  • 116k
98 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

The registration (title too, right?) is in your name, the car is yours. You need to decide how to politely tell her this.
JTP - Apologise to Monica's user avatar
92 votes

Buy house with down payment, no loan, sell instantly

Wholesaling is basically the act of standing in at an auction and "buying" a home on behalf of a yet-to-be-determined buyer. You put a down payment on the purchase, and then, you go out, find that ...
dwizum's user avatar
  • 17k
90 votes

I cosigned for a friend who is not paying the payment

I'm sorry you are going through this, but what you are dealing with is exactly is how cosigning works. It is among other reasons why you should never cosign a loan for someone unless you are 100% ...
enderland's user avatar
  • 4,186
88 votes
Accepted

Can I take out a loan and pay it back immediately to avoid interest?

It will depend on the terms and conditions of the loan you take. Some loans have penalties on early repayment while others do not.
Eric's user avatar
  • 3,642
84 votes
Accepted

Why is being "upside down" on a mortgage so bad?

I can think of a few reasons why they seem like a bigger deal to people than similar situations with other loans. Mortgage values are a lot larger than car loans. For many people, real estate is by ...
farnsy's user avatar
  • 15.1k
84 votes

Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan?

When you pay off a loan early, you pay the remaining principal, and you save all of the remaining interest. So you do save on interest, but it's the interest you would have paid in the future, not the ...
Kat's user avatar
  • 1,193
83 votes

Would using an expensive car as collateral for a small loan to get cheap parking work?

I've never heard of a bank taking possession of collateral at loan issuing, they just obtain a legal right to use the collateral to satisfy the debt in case of default. Pawnshops/pawnbrokers on the ...
Hart CO's user avatar
  • 70.5k
81 votes
Accepted

Borrowing money in one country to pay off debt in another

Logistics of borrowing in a different country aside, financially if the reason the interest rates are higher is because inflation is expected to be higher, you might be trading smaller interest ...
D Stanley's user avatar
  • 135k
79 votes

How can I support myself financially as a 17 year old with a loan?

There are two ways to improve your personal finances: Make more money Spend less money That's literally the secret. To afford the car, you either need more income, or lower expenses. Don't fret, ...
Rocky's user avatar
  • 24k
76 votes

Spouse wants to pay all debt in a month but I don’t. Is this a good idea?

If your interest on those loans accumulates monthly, it's cheaper to pay them off now (unless the interest rate is below what your money earns you in the savings), though I would make sure I have ...
GOATNine's user avatar
  • 2,441
76 votes
Accepted

How is making a down payment different from getting a smaller loan?

They are no different, but the language you are using is different than what is typical. If you are buying a $100k thing (perhaps a house), and you only take an $80k loan, then you are necessarily ...
Ben Miller's user avatar
  • 116k
75 votes
Accepted

Making a big purchase over $2500. I have the money to cover it. Should I get a loan or just place it on credit?

I would not be concerned about the impact to your credit rating. You already have an excellent credit score, and the temporary change to your utilization will have minimal impact to your score. If ...
Ben Miller's user avatar
  • 116k
73 votes
Accepted

Could the loan officer deny me even if I have the money as a first time home buyer?

A financial institution is not obligated to offer you a loan. They will only offer you a loan if they believe that they will make money off you. They use all the info available in order to determine ...
Grade 'Eh' Bacon's user avatar
69 votes
Accepted

What would be a recommended interest rate for an unsecured loan to individuals with mediocre credit rating and income close to expenses?

You're not a bank, so don't try to think like one. Banks base their interest rate off of the average risk of default for similar borrowers based on carrying multiple loans to spread the risk. In your ...
D Stanley's user avatar
  • 135k
67 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

"Her solution to the problem is to take my car" - i.e. THEFT. If you are on the title, it is your car. A cosigner has no right to the item purchased - all he did was guarantee the loan in case the ...
TomTom's user avatar
  • 11.5k
65 votes

Spouse wants to pay all debt in a month but I don’t. Is this a good idea?

Look at how much interest keeping that amount in cash is costing you. At 5% interest, that's $200 a month wasted in interest payments just for the peace of mind of having cash in the bank. I agree ...
D Stanley's user avatar
  • 135k
63 votes

My mother co-signed for my car. Can she take it away from me if I am the one making car payments?

The car is yours, your name is on the title, and you are insuring it based on you being the driver (not her). You are responsible for parking tickets and toll evasion. Any arrangement you might do ...
Harper - Reinstate Monica's user avatar
62 votes
Accepted

Can I take out a loan and invest it at higher interest?

You must consider the different levels of risk associated with each loan. When the bank loans you money, it does so based on a high degree of information about your financial situation (through your ...
Grade 'Eh' Bacon's user avatar
60 votes
Accepted

Options for paying for a nonreturnable leased vehicle

Unfortunately this is going to land in her mother's lap. Since she is a cosigner on the lease she is just as responsible as your girlfriend for paying the return value. Both of them would have to ...
D Stanley's user avatar
  • 135k
59 votes

Why is being "upside down" on a mortgage so bad?

The problem comes when the borrower cannot afford his home. If a borrower buys more home than they can afford, as long as he can sell the house for more than he owes, he's not in a disastrous ...
Ben Miller's user avatar
  • 116k
57 votes
Accepted

Should I pay cash or prefer a 0% interest loan for home furnishings?

There are several issues with paying for furniture and appliances with 0% credit instead of paying with cash. When you pay with 0% credit, you might be tempted to spend more on something than you ...
Ben Miller's user avatar
  • 116k

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