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 ...


12

Under the PAYE income-driven repayment plan, the monthly payment is based on the borrower's Adjusted Gross Income (AGI) on his or her federal tax return. If you are filing married filing jointly (MFJ), the AGI will include both of your incomes, but if you file married filing separately (MFS), her AGI will not include your income. The catch, of course, is ...


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

Their examples adequately demonstrate the difference between partially amortized and fully amortized loans, especially since it's in the context of commercial lending, where 30-year terms are uncommon. The point is, if the amortization period is longer than the term then you have a partially amortized loan (balloon payment due at end), and if the ...


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 ...


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

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.


6

I'd wager that the discrepancy you are seeing is due to a difference between the loan disbursement date and the payment due date, such that the first loan payment is/was due more than a month from the loan disbursement date. Interest accrual begins immediately, but repayment doesn't always begin exactly a month after disbursement. If you check the ...


5

Convenience. There’s a cost to making recurring payments, even if it’s not financial. You need to either set up the recurring payment and ensure you have enough in the account at each payment, or remember to make the payments manually, which takes time and effort. From the vendor’s end, if the conditions for missed or late payments is fair, perhaps the ...


5

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 ...


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

Decades ago in the United Sates is wasn't unusual to see these types of home mortgages. The mortgage amount was much lower back in the 1970's and 1980's, but at the time interest rates were very high. The advantage of the mortgage with the balloon payment in 7 or 10 years was that the risk for the bank was lower. The borrower has to either sell the house, ...


2

In a spreadsheet, the rate per period is usually Rate/1200 here, 5.50/1200, giving you the decimal version per month. i.e. per time elapsed between payments. You want Rate/2600 or 5.5/2600 and the term, usually say, 360, you want 78 as there are 78 payments for the loan you propose. Using these numbers, I get $278.42 as a payment per 2 week period. ...


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 ...


1

The question title: Is it a good idea to make a lump-sum payment to pay off a personal loan, even if I want to build credit history? Assuming that there isn't another debt with a higher interest rate... Assuming that you have money set aside for emergencies... Then making a payment to either completely payoff the debt or to reduce it significantly ...


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