75 votes
Accepted

What are the biggest pitfalls to avoid with student loans?

(This answer is based on the article you linked in the comment, but could probably apply in general as well) What re-payment detail are people overlooking? There are not many specifics in the ...
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  • 113k
67 votes

Friend sent me $6500 through his company and told me just to send it back

The most likely result is that you'll send your "friend" their money and they will disappear forever. A couple of weeks after you've sent the money, the bank will find out that the original deposit ...
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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 ...
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  • 113k
55 votes
Accepted

Is 0% APR ever a bad idea?

I think the main question here is an administrative one: do you want the hassle of having to deal with the payments for 4 years? Often these contracts have terms that mean that if you miss a single ...
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53 votes
Accepted

Should I pay down my student debt early?

In the UK, supposing that this student debt is the government backed type debt and not private debt, then it will never be reported on your credit report and will not affect your chances of getting ...
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  • 8,482
49 votes

Should I pay down my student debt early?

For most people the answer is a strong No, you should not pay more than the minimum repayments. UK student loans are a special type of debt with two big differences to a normal loan: You are not ...
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  • 1,464
46 votes

What method do I use to pay current expenses while paying off credit card debt?

While you have credit card balances that are accruing interest, you should not be charging anything new to the credit cards. There are a few reasons for this. When your credit card has a balance ...
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44 votes

I'm unemployed. Should I pay off my credit cards to avoid monthly payments?

Should I pay off my credit cards to avoid monthly payments even if it reduces half of my savings? Unless you can still live for quite a while with that half of your savings and no income, then no. ...
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  • 113k
40 votes

What are the biggest pitfalls to avoid with student loans?

Attend a less expensive school The biggest pitfall to avoid is attending a school at you cannot afford. If you can get a need-based scholarship to Harvard, by all means attend an expensive university,...
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39 votes

Is it illegal for a student loan servicer to lower the minimum monthly payment after overpayments?

No, I don’t believe this is illegal. I think you’ve already highlighted the reasons this is done: As a service to the borrower, it allows them to lower their payment if they choose. If the borrower ...
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35 votes
Accepted

To pay off a student loan, should I save up a lump sum payoff payment or pay extra each month?

As a new graduate, aside from the fact that you seem to have the extra $193/mo to pay more towards your loan, we don't know anything else. I wrote a lengthy article on this in response to a friend ...
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35 votes

Friend sent me $6500 through his company and told me just to send it back

ahh sorry for my confusing explanations but It was only one time when I tried sending $2000. The $6500 came through this morning without any problem. You have done it once already. That changes ...
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  • 1,029
34 votes

Is 0% APR ever a bad idea?

Yes, there are circumstances, including perhaps yours, where taking the “0% financing” option is a bad idea. Generally, the fine print of these types of arrangements include a snarl: The interest ...
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27 votes

To pay off a student loan, should I save up a lump sum payoff payment or pay extra each month?

If the savings rate is the same as the loan rate, mathematically it doesn't make any difference whether you pay down the loan more and save less or vice versa. However, if the loan rate is higher ...
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  • 8,766
26 votes

To pay off a student loan, should I save up a lump sum payoff payment or pay extra each month?

If you pay extra now you will pay less in interest over the life of the loan. Unless your savings account has a higher interest rate than the loan's rate you are not saving anything. That being said, ...
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25 votes

I'm unemployed. Should I pay off my credit cards to avoid monthly payments?

Dave Ramsey, the famous personal-finance guru and radio personality, has a concept he developed after counseling thousands of families in crisis situations called the four-walls. The idea is to ...
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25 votes

Friend sent me $6500 through his company and told me just to send it back

It's hard to tell from what little information we have what exactly is going on, but one thing is sure: it's not normal. Whether your "friend" is trying to cheat on taxes, trying to steal from you, ...
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  • 3,397
23 votes

Options for paying for a nonreturnable leased vehicle

If there is a cosigner, then bankruptcy on the part of your girlfriend won't be helpful: the mother will simply be fully responsible. The first option here should be to talk to the dealership/...
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  • 34.6k
20 votes

Friend sent me $6500 through his company and told me just to send it back

Another possible reason is he is writing it off as paying you while he creates a 1099 that you got paid out 6500. You will be forced to pay taxes on it if he files it. He will be able to write it off ...
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  • 301
19 votes

Is there any loan forgiveness or help for a large Federal parent student loan?

With a Parent PLUS loan, by default you are on the Standard Repayment Plan, which pays off the loan in 10 years. If the payments are too difficult to make, there is another option called Income-...
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19 votes

What are the biggest pitfalls to avoid with student loans?

One pitfall that I have not seen mentioned, and that I unfortunately fell into myself, is Using Student Loans To Pay For Your Lifestyle When you are in school on student loans, you are poor. Live ...
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  • 2,528
18 votes

Friend sent me $6500 through his company and told me just to send it back

This is a funds parking scheme for defrauding immigration services. The employee seeking a visa "invests" in an unscrupulous company with some cash sum ($100k or so?). The company shows that the ...
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  • 1,139
17 votes

Why am I not entitled to keep the money given to me by the Government in error?

Are you asking why you aren't entitled to money that someone gave you by mistake? I think the answer is obvious even if you don't like it. If you overpaid your taxes how would you feel if the ...
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  • 50.4k
17 votes
Accepted

At what point should I begin paying off student loans?

Everyone has made some good points that I was going to mention but to put it in terms that might make it easier to decide. As stated by others, paying off debt and being free is always the goal and ...
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17 votes

I'm unemployed. Should I pay off my credit cards to avoid monthly payments?

No. By paying off your credit cards now, you'll be losing money you won't be recouping in the foreseeable future. I imagine the second part of your question is related to being able to use the ...
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  • 1,139
15 votes

Can anyone help me understand my loan payment?

If your loan payment schedule was set up correctly, you should have been paying $840.71 per month for 5 years and would have been finished with the loan by 2011. By paying only $700 each month, you ...
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14 votes
Accepted

Will credit card payment from abroad be suspicious as taxable income?

US bank deposits over $10K only need to be reported to FinCEN (Financial Crimes Enforcement Network- a bureau of the US Department of Treasury) if the deposits are made in cash or other money ...
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  • 45.2k
14 votes

What method do I use to pay current expenses while paying off credit card debt?

can I use my credit cards for the monthly expenses Sure you can. But I think you're really asking if it's wise to use the card for monthly expenses. My answer is NO, especially if you're in so much ...
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  • 48.7k
13 votes
Accepted

What is the formula for the monthly payment on an adjustable rate mortgage?

In an adjustable rate mortgage (ARM), the starting interest rate is guaranteed for a certain period. After this period, the rate can go up or down. The monthly payment on these loans is calculated ...
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13 votes

What method do I use to pay current expenses while paying off credit card debt?

While in my heart, I respect Ben's answer, let me play devil's advocate. You don't mention the details for each card, the credit line, interest rate current balance. Say you have one card that offers ...
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