75

(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 article, but here are some possibilities: Some interest had accrued while in school, so the amount owed after graduation was significantly more than the original "...


39

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, but don't go to a school that costs $30K/year if you have to go into debt for it. There are plenty of cheaper alternatives like attending a community college ...


18

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 like it. Do not use student loan money to fund partying and a nicer lifestyle than you can afford.


12

Paying more for a degree than it’s worth. (In addition to what other answers have said about not paying enough towards the principle, and going to expensive schools.) One of the big pitfalls I’ve seen in these kinds of sob stories is people going to an expensive school for an economically worthless degree, and then being shocked that having six figures ...


7

Under the circumstances I'd suggest paying off the 3000 dollar card because in March it's interest rate is likely to skyrocket. Keep the rest in reserve for emergencies.


7

Many people borrow more than they can repay, then take advantage of loan forgiveness on an income-based repayment plan. From what I've seen, this is the most common scenario by which people make so little progress on their student loan principal. A federal student loan with a standard repayment plan will be paid back in 10-years barring any periods of ...


7

Optimistically, you are playing an arbitrage game for 6.5% (10%-3.5%). For me it is not worth it, I'd rather own a house free and clear. You may have a different opinion. One of the ways to evaluate a business proposition is to discount the money invested in 20%. So, you would only buy into a business for 100K if it had 20K in profits. That 20% factors ...


6

The sample letter that CFPB provides is as follows: I am writing to provide you instructions on how to apply payments when I send an amount greater than the minimum amount due. Please apply payments as follows: After applying the minimum amount due for each loan, any additional amount should be applied to the loan that is accruing the ...


6

There is actually a meaningful difference. Say you have two loans of 50k each.... If you accelerate payment on one and pay it off (at some point), the amount YOU MUST pay per month goes down by half. BUT if you only pay off 1/2 of each.. .you still have the same monthly obligation. So while the amount you put in is mathematically the same, and the ...


6

No, not like this. You may be totally liable for any debt of the business, but seizing things is an official act. Also this is in this case seizing THIRD PARTY collateral as you said the car does not even belong to you. In this particular case, there is a criminal background. It is called extortion. Report to the police.


3

(Much as Bob B said) Dividends are usually funded out of the earnings of the company, either current-year or retained. If the company decides for whatever reason to distribute dividends in excess of earnings, they are accounted for as coming out of paid-in capital, and this is called 'return of capital' or just 'capital distribution'. If you are in the US (...


3

To effectively answer this question, we need details on what happens to those credit card interest rates when they rise. Let's assume for now that they all rise to 17%, which is slightly below the national average. Let's also assume you don't pay retroactive interest - that would make paying those debts even more important FWIW. Those assumptions mean ...


3

I would really love to get rid of my Truck payment and play the balance transfer game while contributing towards each 0% card. Getting 0% Balance Transfer may not be easy. Most institutions would look at a credit score that is quite high. So you may not be eligible. Plus there would be some hidden terms and conditions. Say if you are already on Balance ...


3

Noting the year-by-year balances ... y0 = 10000 y1 = y0 (1 + r) y2 = y1 (1 + r) y3 = y2 (1 + r) y4 = y3 (1 + r) y5 = y4 (1 + r) - 26000 y6 = y5 (1 + r) - 4000 ∴ y6 = -4000 + (1 + r) (-26000 + 10000 (1 + r)^5) Solving for the balance in year 6 being equal to zero, i.e. fully repaid ∴ r = 23.925%


2

If the loans are of the same amount it doesn't make any difference if you pay on one or divide by 2. If this is home loan (also called mortgage) there could be difference in taxation benefits. You need to add country tag as it's different in different jurisdiction.


1

One method: set up a spreadsheet with a cell labelled "rate", and columns labelled "balance" and "payments". Enter the payments, initialize the first balance as 10,000, then set each subsequent balance as the previous balance plus the previous balance times the rate minus the payment. Now go to "goal seek"/"solver", and find the rate that sets the final ...


1

You should keep in mind that once you got rid of a card, its monthly rate will become available for other purposes. So I think that for now you should keep your money. In March, you should pay off the remaining $2800 of the "March card" (am I right that there are two payments for $100 are still pending there?). This gives you $100 per month as "free" money ...


1

Car Loan $17,000 @ 3.4% $532 a month payment Credit Card $3000 @ 0% interest till March 2019 Credit Card $3800 @ 0% interest till Nov 2019 Credit Card $5000 @ 0% interest till Jan 2020 You have $7,000 cash and from comments stated you're paying at least $100 per card while in 0% interest state. There's a balancing act with debt repayment, you ...


1

A quick search indicates that the rules changed as of 1-Jan-2018. Previous to that, the loan would be due 60 days after termination of employment (voluntary or involuntary) which is the case in the question asked. Under the new rules, the borrower has until the due date of the Federal tax return (plus extensions) to repay the loan without it being deemed a ...


1

How old is your child? If the child is still a few years off from going to college this seems like a great solution to your issue. The only issue, really is if they are currently in college and 40K is expected to not last until you can come up with the additional 10K, however, the way you ask the question that does not seem to be the case. I would talk to ...


1

I'm not familiar with the system, but if your agreement allows you to specify how payments should be allocated (you should check whether this is the case), consider making it simpler for the service provider. Make 2 payments each period: The exact amount needed to cover interest payments for the period. Instructions: "This is the scheduled interest payment ...


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