Questions tagged [loans]
This tag is a generic tag to be used when asking a question on Loans / lending. If there is a specific question the other related tags like home-loan, student-loans, etc should be used.
1,138
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Spouse wants to pay all debt in a month but I don’t. Is this a good idea?
Between both of our student loans and car loan, we are in the hole about $48,000. My spouse is adamant about paying off all debt in the next month or two since we currently have about $55,000 in the ...
- 1,053
85
votes
10
answers
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Why is being "upside down" on a mortgage so bad?
For the longest time (especially during/after the housing crash in the US), people would speak in hushed whispers or terrified pleas when they talked about being upside down on their mortgage. While I ...
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72
votes
1
answer
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My friend cosigned for a defaulted loan. Should he declare Chapter 7 bankruptcy?
Background:
My friend Abe co-signed an auto loan for about $25k with his "friend" Bella, in the USA state of Maryland, about 4-5 months ago. The car was for Bella's use. The deal was that ...
70
votes
12
answers
55k
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I cosigned for a friend who is not paying the payment
I cosigned for a loan for a friend. He has now moved away and is not making payments. I have been asked to pay--they even called my job--and I need to keep my credit. The payments are too high for me ...
- 657
60
votes
9
answers
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Why are 30-year mortgages seen as unwise, if you can pay off the loan in a shorter period of time anyway?
I'm slowly working towards buying my first home (yay!), and have been playing around with the numbers. As far as I can tell, there's literally zero advantage for getting a 10 or 15-year mortgage since ...
user44315
59
votes
5
answers
17k
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Borrowing money in one country to pay off debt in another
I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%.
In my home country I have several mortgages, basically at the moment funding ...
- 693
57
votes
12
answers
28k
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Should I pay off a 0% car loan?
I'm ahead on 0% interest car loan. I don't have to make a payment until October. I currently owe $3,000 and I could pay it all off. Should I do that or leave that money in my savings account that ...
- 571
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votes
12
answers
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My mother co-signed for my car. Can she take it away from me if I am the one making car payments?
My credit is in the low 500s and I was unable to get a car loan. My mom cosigned for me and I've now had a beautiful car for three months. I've been making on-time payments, the registration is in my ...
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46
votes
4
answers
12k
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Would using an expensive car as collateral for a small loan to get cheap parking work?
There's a rather old joke which is being told in many variations and my question would be whether events narrated could actually happen in real life. I'm not in the US so I don't know all the details ...
- 2,889
44
votes
12
answers
15k
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Should I buy a house now before prices rise even more?
We rent an apartment in Frankfurt, Germany and we are contractually bound to it for another 1.5 years. We are 33 and 35 years old and there will be children soon. We make around 110k € annually (...
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votes
14
answers
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Hypothetically, should I pay off the smaller + higher interest rate loan first, or the larger + higher absolute interest cost?
I have this hypothetical situation on my mind and I am not sure which is the best solution.
Given:
Loan 1: $340,000 at an interest rate of 1.69% per year
Loan 2: $40,000 at an interest rate of 3.6% ...
- 441
43
votes
14
answers
15k
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How can I support myself financially as a 17 year old with a loan?
I'm a 17 year old Ohio high school student who makes ~$160 a month working minimum wage. I have a $3500 loan (4 year duration) to pay off for a car with ~$2880 left.
Monthly payments are ~$80 for ...
- 439
43
votes
3
answers
13k
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Can I take out a loan and invest it at higher interest?
I noticed today that my bank is offering small loans of up to £15000 at 3.3% interest. Meanwhile, services like Zopa and RateSetter are offering over 6% interest on investments in their platforms.
I ...
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40
votes
6
answers
18k
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Can a car company refuse to give me a copy of my contract or balance details?
I have an auto loan with a car company that after looking at all possible amortizations, doesn't match what my payment should be. I'm talking with 40% interest rates, adjustable interest rates, ...
- 620
40
votes
7
answers
10k
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Why use credit when you have the cash?
I've heard several people state that they get loans even when they have the money to cover the cost in the bank, and it befuddles me why they would pay interest instead of using their own money.
This ...
- 7,856
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13
answers
12k
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Is there a price point beyond which it no longer makes sense to buy an apartment or house?
I am in a very frustrating situation right now. I have accumulated a decent amount of value in cash and stocks. My wife and I however are still living in a rented small flat in our town in Austria ...
- 563
39
votes
4
answers
18k
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How do I lend money to a friend for a car and put the car as collateral?
A friend of mine wants to buy a car, but does not have the money for it.
Instead of him going to a bank and borrowing the money to buy the car, I was thinking of maybe taking some cash from my bank ...
- 415
39
votes
10
answers
75k
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Why do governments borrow money instead of printing it?
This question is raised in the movie Money as Debt (at time index 29:00).
The answer that immediately pops to my head is "because printing money causes inflation".
However, according to this movie, ...
- 2,400
38
votes
8
answers
4k
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Optimal way to use a credit card to build better credit?
I have a credit card with a $700 limit and I am curious how to optimize credit gain with it. Right now, I use it once a month (usually on something small like a drink from a convenience store or ...
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votes
5
answers
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Should I dump my savings into my student debt?
I've got about $5000 saved up in my savings account.
At the same time, I've got about $8500 left to pay off on my student loan, with all the interest that includes (6%/year, compounded monthly).
...
- 4,374
36
votes
7
answers
3k
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How does a bank lend your money while you have constant access to it?
How do banks / fintechs lend your money while you have constant access to it, ie. can withdraw at any moment? I assume there is some kind of liquidation pool, but how exactly is that managed with ...
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votes
4
answers
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Why is the car dealer insisting on a loan instead of cash?
I saw a question that said "He (dealer) knocked down the price quite a bit" but my experience is different. The dealership says that they have a US$1500 incentive if I take a loan from their financing ...
- 3,492
32
votes
11
answers
12k
views
Should I charge my children interest when they borrow money? [closed]
My children (both male, ages 25, soon to be married, & 32, married) have borrowed money from me and my wife on several occasions. They have yet to pay us back what they borrowed. We have never ...
32
votes
6
answers
13k
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Is it legal to mortgage a property twice or more?
I was talking to one loan agent lately about getting an investment loan, she was trying to convince me to mortgage my house but my house has been mortgaged already.
She was saying "let us not worry ...
- 573
31
votes
13
answers
9k
views
Do I pay a zero % loan before another to clear both loans faster?
I have $11,000 to put toward one of my three loans. I think I should pay off the 0% car loan and then in two months it will be zero and I can apply that $635 to the 2.5 % car loan and pay it down ...
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31
votes
9
answers
14k
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Is asking to pay off principal first a placebo?
Some people say that in order to pay off a loan sooner, you should ask the lender to "apply your payment towards the principal", so that they won't "apply your payment towards the interest".
From my ...
31
votes
9
answers
12k
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Is it a good idea, to buy a flat with a loan, whilst using the rent to pay it off? [closed]
I have been thinking about taking a loan to buy a flat which I would rent out. My reasoning is that the loan would be paid off over time by the renters. After perhaps 30 years, I'd be left with a ...
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31
votes
11
answers
11k
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Is it a good time to replace my used car?
We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt,...
- 413
31
votes
3
answers
3k
views
What are the pitfalls of loaning money to friends or family? Is there a right way to do it?
What are the pitfalls of loaning money to friends or family? Is there a right way to do it?
unknown
29
votes
7
answers
21k
views
Making a big purchase over $2500. I have the money to cover it. Should I get a loan or just place it on credit?
I am planning to make a big purchase. I have the money in savings to cover it, but I don't want to drop $2500 all at once if I can avoid it.
I have a credit card with a $9000 limit, but I know that ...
- 1,199
29
votes
9
answers
11k
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Should I pay cash or prefer a 0% interest loan for home furnishings?
I live in France. I bought an apartment with a mortgage a month ago.
I've been buying plenty of stuff for this apartment like furniture, decoration, oven, etc. And I still need to buy other stuff.
I'...
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28
votes
6
answers
15k
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Why will the bank only loan us 80% of the value of our fully paid for home?
We own Land and a home, wanting to downsize and just buy a home and lot. We do not owe anything on our land and home, but have asked about a loan using our land and home as collateral, but, even ...
- 281
28
votes
6
answers
10k
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Loan to son - how to get it back
A few years ago, we loaned our son money to start a business, which did not flourish. Yep, we know now it was a bad idea. But now, we owe $54k on our equity line, which he is only paying interest on....
- 281
27
votes
5
answers
12k
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Buy house with down payment, no loan, sell instantly
I just read Rich Dad Poor Dad, and I have no idea about mortgages, loans or real estate.
The author of the book describes a scenario in which a property is found for a cheap price (auction in this ...
- 387
26
votes
6
answers
7k
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Does borrowing from my 401(k) make sense in my specific circumstance?
I know the standard answer and understand that I will be losing out on that compound interest, but I am young and only need to borrow a few thousand. here are some more details:
Need to borrow $6500 ...
- 433
26
votes
7
answers
12k
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Why do people use mortgages, when they could just pay for the house in full?
I would like your recommendation on whether you should buy a house with a mortgage, which you would pay as you go, or should you buy it in full.
Alex
26
votes
8
answers
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To pay off a student loan, should I save up a lump sum payoff payment or pay extra each month?
I am a new college graduate with a student loan of $17k at 6.8% interest. The monthly minimum payment due is $193. I have been paying the minimum amount, and then taking that same amount and placing ...
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25
votes
7
answers
22k
views
Should I pay for a computer up-front or on finance?
This reads a bit like a home-work question, but this is actually my situation. The job I've taken is a BYOD (bring your own device), workplace and I prefer to use my own equipment.
I've just started ...
user67312
25
votes
5
answers
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Who gets the interest on a 401(k) loan?
I was looking at some information about my 401(k) and noticed that it's possible to take out a loan from your 401(k) - it was something like 6.5% interest, which probably isn't as good as a ...
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7
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Can my dad remove himself from my car loan?
I bought a new car from a dealership, and my dad agreed in front of my husband and my mother to co-sign for me. The dealership allowed me to take the paperwork out to my dad's house and have him sign ...
- 259
24
votes
5
answers
5k
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Options for paying for a nonreturnable leased vehicle
Late last year, my girlfriend's car was stolen and subsequently destroyed. This car was a leased vehicle. For reasons beyond her control‡, the insurance had lapsed a few months prior. The ...
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24
votes
1
answer
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Paying off home mortgage and lender wants a "Recording Fee"
So I whittled down my house note to the point where I have enough cash to just pay it off early and be done with it. Yay!
I asked my lender for a "payoff" statement, which provides an accounting of ...
- 53.1k
23
votes
7
answers
8k
views
Would it make sense to take a loan from a relative to pay off student loans?
Together my wife and I have about $80,000 in student loans. My mother in law is in the process of selling her house. We proposed the idea of borrowing ~$50000 from her, once she sells, so that we ...
- 333
23
votes
10
answers
27k
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Someone asks you to co-sign a loan. How to reject & say "no" nicely or politely?
Hypothetical situation:
A dear friend or family member comes to you and asks you to co-sign for their loan. Let's say the reason they need the money is not a life-or-death type of situation. ...
- 31.7k
23
votes
4
answers
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Would it be advantageous for me to pay off these two credit cards and cancel them with a 401k loan?
I'm considering taking a loan on my 401k in order to pay off and close 2 credit cards. I have approximately 30 years until I consider retiring. The amount of the loan will be $1700 which is less ...
user27010
23
votes
5
answers
9k
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Should you co-sign a personal loan for a friend/family member? Why/why not?
I know someone who was recently asked to co-sign a hefty loan by a family member. I don't know what I'd do if I was put in the same position as the one asked. What are the risks? What are things to ...
- 8,683
23
votes
3
answers
4k
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Paying off student loans early/lump sum -- best practices?
My wife & I have run into a large sum of cash recently and are interested in paying off/paying down our student loans -- about $30k between us, at about 6.5% avg interest.
We're both earning ...
- 233
22
votes
13
answers
27k
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Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan?
Maybe I'm incorrect in my thinking, but I have a question about prepaying a loan. When you take out a mortgage on a home or a car loan, it is my understanding that for the first years of payment you ...
- 245
22
votes
5
answers
10k
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Could the loan officer deny me even if I have the money as a first time home buyer?
As of right now I am a senior in college in the United States. I have managed to secure a job once I graduate in May making around 78K. I started working at my year long internship in May of this year....
- 453
22
votes
12
answers
7k
views
Pay off Loan With Savings or Keep Emergency Fund
A year and a half ago I took out a Career Development Loan(£7000, 9.9% interest). Which is currently around £4900 now. I have been saving for no particular reason, and I now have over £5000 in savings ...
- 332