163

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 harder you sacrifice, the less time it will take. Please advise me how to reduce my debt. Stop creating any more debt. Cut up all credit cards Put $1,000-2,...


121

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 doubles every 38 months. Every dollar you pay down your debt, cuts the total length of time you will be paying that horrible interest. Every $1 you spend now ...


79

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. What I would suggest doing would be for your MIL to buy your ex a cheap and simple clunker to move herself around without you being ever involved. If you still ...


77

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 information, and have no intention of giving you a loan. How can I tell? Simple: all such offers like this everywhere are scams. There is no economic situation other ...


65

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 idea of interest paid between friends. A gift acknowledges the benefit you've received, but doesn't monetize your friendship.


53

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 pay auto insurance), $750 for a personal loan and $750 to $1,000 for credit card. I also need to send $100 to $200 to my home country. Total monthly expenses ...


42

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 to give or not; but do not lend. If your friend can afford and is willing to give the money to this parent, then he should do so. However, this situation ...


39

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 want her to build 'equity' but it's pretty convoluted. You can't actually give her ownership, and in the event you break up (I know you won't, but this is to ...


28

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 the lease. You may be limited to 1,000 miles a month for a total of 36,000 over the 3 year time of the lease. Your ex-wife could drive all 36K miles in her 24 ...


25

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 all) unsecured personal loan providers will want some indication of the purpose of the loan, and you will need to be honest with them about this or it would be ...


25

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 friend, you are not in a financial position to do this. An analogy is a toddler who wants to help carry in the groceries and tries to carry in a gallon container ...


23

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 she fails to keep her end of the bargain? (Those who ignore the past are destined to repeat it) you paying for everything (she falls behind on payments, and well.....


23

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, but it doesn't have to be. You could use a credit card almost like cash, if you are careful. I'm not familiar with the system in France, but in the US, even ...


19

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 for herself. That is all. That is the essence of what this deal is. It is not without interest - she makes a financial contribution toward your son, you get the ...


17

Firstly, there is also a lifetime gift+estate tax allowance. If the father's estate, including other gifts given in his lifetime, is unlikely to exceed that allowance, it might be simplest simply to give the whole amount now and count it against the allowance. Right now the allowance is $5.34M, but that seems quite a big political football and it's the ...


17

New car loans, used car loans, and refinances have different rates because they have different risks associated with them, different levels of ability to recoup losses if there is a default, and different customer profiles. (I'm assuming third party lender for all of these questions, not financing the dealer arranges, as that has other considerations built ...


16

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 you. If you want her to be building equity, have her start and fund a brokerage account for herself. If you have an affinity for real estate, have her buy ...


15

No, it would not be wise at all. Name on the title means ownership. Once its there - only she can remove it. Instead, you give your friend a deed of trust, which is conditioned by the terms of the loan. This way your friend (now lender) can foreclose on the property if you default, but she will not have any rights to the property in any other case. That's ...


14

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, a "small payment" for some documents will be needed. And next another for a certificate necessary for lending, and so on. Their goal is to get your money, not ...


14

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 interest in such cases can't be more than prevailing market rates. Your friend has to pay taxes on interest income. The numbers don't add up. On your income ...


13

Gift taxes kick in at around $13K per giver per recipient per year. That means that a straight up gift of $200K (as cash or a house) will incur a tax. It is possible, however, that if the father has a spouse, he and the spouse could each give the mother and each child the full gift limit, for a total of about $78K per year, and that money could be used by ...


12

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 money by repossessing the car if you didn't make your payments.


12

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) would be the same at 669 years, so any term longer than that would be literally throwing money away. Though, one could argue that 669 years compared to 668 is ...


12

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 realize what happened and make course corrections. Otherwise this will be your life. Indeed, bankruptcy is the next step in the ever repeating cycle, so the ...


11

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 garnishment, or a real estate lien. It sounds like you'll need to reach out to your local police/sheriff's department and they can further help you out and get you your ...


10

What kind of interest did the two of you agree upon when you borrowed the money? If you didn't discuss this in advance, what kind of interest do the two of you now agree would be fair? If your friend is now insisting that interest isn't needed, but you feel you owe something, you will have to decide for yourself what kind of gift would appropriately ...


10

I agree with you: it sounds like a scam. Those terms are too good to be true. Online, it is too easy to pretend to be someone you are not. When choosing a bank to work with, you need to be confident of its legitimacy. Make sure you have heard of it someplace other than their own website and can trust it. In this case, this isn't even a bank; it is just an ...


10

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.


10

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. They will have to do this when they apply, and just before the settlement date. If they have a large sum of money being transferred into their bank account, ...


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