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 ...
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  • 113k
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 ...
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  • 6,199
81 votes
Accepted

I am considering leasing a new car for my ex-wife. What can go wrong?

Everything on Earth can go wrong. Including, god forbids, your MIL being hit by a bus the next day and your ex inheriting all of her belongings and none of her promises to you. This is a bad idea. ...
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  • 127k
77 votes

3% personal loan online. Is this a scam?

It doesn't matter if the terms are a "fair deal" or are "too good to be true" — either way, it's definitely a scam. They are "phishing" for your personal information, including your banking ...
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  • 734
63 votes

How much interest should I pay on a loan from a friend?

If you didn't expressly discuss terms I would recommend a gift in lieu of interest. Lending between friends can be complicated and change relationships unexpectedly. Some people are offended by the ...
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  • 1,086
52 votes

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

My income is 78K to 80K after taxes and insurance. I pay $1,500 for rent+utilities, $150 for phone bill, $450 for auto loan, $300 for auto insurance (for two people; I am helping a friend who can't ...
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  • 3,014
42 votes
Accepted

How to handle a parent going through divorce asking to borrow money

Lending money between relations is typically a bad idea. This can lead to very awkward dinner conversations and has been known to terminate these precious relationships. In these cases the wisdom is ...
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  • 74.9k
40 votes
Accepted

How can I legally and efficiently help my girlfriend build equity by helping with a mortgage?

Have her chip in for the regular expenses, utilities, food, etc., and a bit for "rent." Then tell her to be sure to deposit to her retirement account, preferably a matched 401(k). It's admirable to ...
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33 votes

Can you hire a cosigner online? And does it work? Has anyone tried it?

A cosigner is 100% responsible for the entire debt. The lender would track down the cosigner and enforce the terms of the loan if you are unable to pay. Why would a person you don't know take on this ...
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28 votes

I am considering leasing a new car for my ex-wife. What can go wrong?

Besides the ex-MIL not coming up with the monthly payments, and the ex-wife destroying the car there are other problems. A lease generally limits you you a specific number of miles over the term of ...
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25 votes
Accepted

Can I take personal loan in UK and send the proceeds to parents abroad?

There are no particular restrictions in the UK on sending money abroad, so if you can get the loan in the first place you can send the money abroad. The main potential issue will be that many (maybe ...
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24 votes

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

One thing that I don't see addressed in the other answers is this: I am helping a friend who can't pay auto insurance You MUST stop this. While I understand, and applaud, the desire to help a ...
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  • 2,528
23 votes

I am considering leasing a new car for my ex-wife. What can go wrong?

Does your planning include contingencies for a total loss of the car (Accident) repo of the car (her not paying) disappearance of the car (her driving to mexico, one way) a hit on YOUR credit when ...
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  • 892
22 votes
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In which situations is it better to consider a loan instead of paying cash?

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, ...
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  • 45.2k
20 votes

I am considering leasing a new car for my ex-wife. What can go wrong?

I think everything in your case is just simply missing one important rule of how credit works. Essentially, your MIL cannot get a loan. You can. You are making her a large loan that she cannot get ...
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  • 569
16 votes

How can I legally and efficiently help my girlfriend build equity by helping with a mortgage?

There is no simple, legally reasonable, way for her to build equity by helping out with your mortgage, without her having a claim to your mortgage. The only 'equitable' thing she can do is rent from ...
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  • 20.1k
16 votes

Personal loan to renovate my mother's home

You can take out a personal loan for any reason - to burn the money for fun, if you like. But be aware that you owe it back, not your mother, or anyone else. They will come to you for the repayments.
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  • 36.7k
14 votes

3% personal loan online. Is this a scam?

It is a scam. Not only will it get your personal information, which could allow him to impersonate you (like, using your identity as the generous lender on a future scam), in order to fulfill the loan,...
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  • 805
14 votes

Why is proof of income requested for certain loans but not others?

Why don't you just put your down payment on one of your credit cards? (Note: I'm not actually suggesting that you do this. Please read on.) There are a few reasons why you wouldn't (or couldn't) do ...
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14 votes

INR 10 million borrowed from friend at 7% interest per annum

Loan repayment can't be tax deductible except for home loan. If the home loan for first house is taken from close friends and relatives, it has the same tax benefits as if taken from bank. The rate of ...
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  • 56.5k
14 votes

Personal loan while unemployed?

Its not likely for these reasons: You currently don't have an income. How can you payback a loan if you have no income? There is no collateral. In the event you do not pay, nothing of value could ...
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  • 74.9k
13 votes

3% personal loan online. Is this a scam?

any amount, any length of repay time Ask if you can have a billion dollars for a billion years. On a more serious note, that would actually be horrible advice because your monthly payment ($2.5M) ...
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  • 45.2k
13 votes

What prevents one from taking a personal loan to pay off credit card debt from same bank?

Does that mean the loan cannot be used to pay off debt by the same bank? What stops loan borrowers from simply transferring the cash deposited into the checking account to pay the balance on the ...
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  • 127k
12 votes

Do I have to use the entire loan amount?

I doubt they will let you even get an auto loan for almost double what the car is worth. A car loan is secured by the car. If it isn't worth what you borrowed they wouldn't be able to recover their ...
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  • 50.4k
12 votes

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

The tropes that got you here There's a core pattern of thinking that drove you here. It is a well known trope, and it has already made you a debt slave. Now, whilst in the middle of it, you must ...
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12 votes

Can you hire a cosigner online? And does it work? Has anyone tried it?

Let's think about how to make money co-signing loans. First, we'd need a large pool of money (say, $1 million), so that we could operate profitably. This allows us to co-sign on many loans at once, ...
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  • 238
12 votes

Does increasing loan term increase APR?

Yes, typically longer term loans have higher interest rates since it's more risk for the lender (among other reasons). I would choose the shortest term loan that you can afford - you'll pay less ...
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  • 113k
11 votes

What is the next step to collect money after a judgment has been ignored?

According to LegalZoom: If your debtor is unwilling to pay and you know they have the means, it's time to use your local sheriff. You have three options to collect: a bank levy, wage ...
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  • 10.2k
11 votes
Accepted

Securing a loan with a loan, does this even make sense?

As part of the loan approval process your friend will have to prove at two different times that they have a plan for the down payment, and they will have to show bank account statements to prove it. ...
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