Ask MetaFilter questions tagged with repayment

Time to pay the piper, but I'm still paying a DIFFERENT piper.

Anonymous — Wed, 25 Nov 2009 13:58:15 -0800

I'm a graduate student who has been in school continuously in Canada for 10 years now. Now the student loan people want to make me pay. What can I do? I'm a graduate student who began university in 1999 in British Columbia. In my first year of undergrad, I applied for, and received, a government student loan amounting to a colossal $260. After that, I did not apply for any further funding until I began my graduate education in an MA program, also in BC. I received student loans for three years as a result of this. I finished my MA, and went on to do PhD work in another province.

I have diligently sent in my forms indicating that I am still a university student and have never had a problem. Yesterday, though, I came home after being out of town for the weekend to find a letter saying I am to begin re-payment as I have used up my 520 months of grace period, even though I am still enrolled in a Canadian (non-BC) university as a PhD student.

This threw me for a loop as I had, a month previous, received a letter confirming that they had received my proof of enrollment and I was still okay to not pay anything just yet, being covered until the end of the semester after my proof of enrollment indicated (I have to do the proof of enrollment each semester). They want me to begin payment on the entirety of my student loans, not just the $260 I borrowed ten years ago.

I spoke with the student loan people on the phone today and they said that all I can do is apply for interest relief, principal deferment, or extended amortization (all of which are described here) and that there are absolutely no appeals available.

I'm totally at a loss as to what to do. I offered to just pay off the $260 from 10 years ago but that won't do anything, apparently. I really can't afford to start paying my student loans back right now being, still, a poor graduate student. I don't know what my options are beyond those three things above. Can anyone offer any advice (and I fully recognize that you are not my lawyer, accountant, banker, financial advisor, or anything similar).

Credit card charge off: pay in full or accept settlement?

Nickel — Mon, 03 Aug 2009 00:11:15 -0800

Credit card charge off: pay in full or accept settlement offer? My 23 year old sister racked up some credit card debt during a low point in her life a few years ago and is now looking to tackle it and get her credit back on track. I am in a position where I can help her financially and would like to help her make the best decisions.

All of her credit card debt (~$7000) is charged off and sold to debt collection agencies. The agencies are offering settlement deals for a little less than 50% of the original amount owed.

1. I'm assuming that "charged off - paid in full" looks better than "charged off - paid a settlement" on a credit report. Is that right? Is it a significant difference or should we save the money?

2. How would these options actually be listed on her credit report?

3. If she does settle, can she ask that they remove the information from her credit report as a condition of settling?

4. If she pays in full, can she have the charge off removed from her credit report?

5. If I add her as an authorized user to some of my credit cards, will it raise her credit score? Will it lower mine?

NB. She talked to a credit counselor about a year ago, but couldn't afford the minimum due so they couldn't work with her. If you can personally recommend any counselors in the SF Bay area, I would appreciate it.

I'm sorry, you are denied!

Anonymous — Mon, 13 Jul 2009 15:45:34 -0800

Will my credit ever recover? I was trying to do better.. got a job, paid on time.. But I got rejected for a credit line increase today. Mind you, my current limit is already only $300! About 5 years ago, when I was a freshman in college I neglected bills and wrote a some bad checks. Awful. I know. About three of these accounts totaling $5k went to collections. I paid about half for a year and then stopped because I was out of work. Today the debt hovers around $3k. I still don't pay these debts.

Despite this I was able to open a checking/savings account with a major bank and was able to get a secured visa w/ a limit of $300 though them in 2006. After a year of good payment history, they refunded my $300 and turned my secured card to an unsecured one. I thought that this was a good sign. I've been using it for little purchases and paying it off every month without a single late payment since 2006. I have an OK job now, but need to return to school soon and will probably need to get loans. Which is why I am worried about my history,

True, I should have paid down those debts ASAP but I went through some personal turmoil for some years and haven't really gotten back on my feet (completely stopped spending, got a steady job, found affordable housing, stopped relying on others for $, and established a real emergency fund) until about a year ago.

What do I do? I really can't ignore the past debts can I? One of my friends suggested just leaving it be since I'm so close to the statute of limitations on them. But that isn't true, is it? Debt doesn't just fall off your report if you hide long enough?! I imagine a lot of dishonest people (like me, I guess) would do this just to avoid bills.

Now that I can help myself a little more, what do I do? If I were to start paying them back today, what would it show on my credit report? Won't it still say that there are collections on them? My current score is a measly 520. How long does it take for my score to reflect repayments? Is it removed when I pay in full or when I start payment?

I feel DEEPLY EMBARRASSED and ASHAMED of this. As I should, but I want to fix things. Can you offer any advice?

By the way, I wasn't trying to up my limit to go on a spending spree. Just trying to up my limit so that I can pay the deposit to rent a truck and move.

give me my money back?

mandapanda — Thu, 12 Mar 2009 11:21:27 -0800

I paid first, last, and 1/2 month finder's fee when my roommate/best friend and I moved in a year and a half ago. Should I get her to pay up (explanation below) and if so, how do I get her to pay up? My roommate/best friend and I moved across country a year and a half ago. We originally agreed to split the costs of the move. I paid for the new apartment's first, last, and half month fee since I had enough money in my account at the time and my friend had none. She promised to pay me back. Then, her parents decided to pay for the moving truck and movers, which cost about the same as her half of the apartment fees. I suggested that we call it even, but she insisted that she would still pay her half.

Fast forward a year and a half. She has a job, but little or no savings. She paid her half of the finder's fee, but nothing else. She wants to move this summer. I asked her a few times over the winter when she started thinking about moving if she was still planning on paying me back, and she said she would. Now her parents have said that they're not paying for her second move. I haven't asked her about the money she owes me since her parents made their announcement, but I'm guessing my chances of being repaid have been sufficiently diminished.

So my first question is, am I still entitled to ask for the money since I originally offered to call it even when her parents paid for the first move even though she repeatedly said she would pay me back? If I should ask for the money, what is the best way to go about it? Her original plan was to pay my half of the rent the last month, but that still leaves the another half month she owes me. Now, I think she's planning on taking that last month and using it for moving expenses.

I want to be as nice as possible about this as she gets upset if it sounds like I'm lecturing her or picking on her. She's my best friend after all. And yes, I know now not to loan money to friends. Thanks for your help!

Please help me better understand repaying my student loans.

4ster — Sun, 06 Jul 2008 11:11:05 -0800

In 1997, I started making student loan payments, five months after graduating from graduate school. Shortly there after, in a sudden moment of sheer, blinding stupidity, I consolidated my loans, reducing my monthly payment and doubling the term of my loan. I do not want to make payments for 10 more years, however, I cannot figure out how to calculate the money I would save py doubling my payments this November. Arithmetic has never been one of my strengths. I've tried plugging numbers into various online loan calculators, but the numbers don't seem right.

So here goes (I don't know if this is enough information or not:

Monthly payment: $262.51
Original principal balance: $31,298.40
Capitalized interest: $0.00
Outstanding principal balance: $14,953.18
Accrued interest: $121.18
Total amount outstanding: $15,074.36
Interest rate is 8%

What started this all was making a double-payment of $520, and discovering that $449 went to principal, when only $139 of a $265 payment went to principal.

So could someone help me understand how much money we will save by doubling all our payments starting in November, and how to figure this out in the future? If your answer is how to better use an online calculator or just a mathematical formula for figuring this out, I'd appreciate.

Having this kind of information will be great inspiration to stick with it, especially in a couple of months when I'm posting questions like, "Does anyone know some good Ramen Noodle recipees?"

Thanks.

How to model an unusual mortgage repayment strategy in Excel?

obiwanwasabi — Thu, 14 Feb 2008 17:16:37 -0800

How can I model an unusual mortgage repayment strategy in, say, Excel? A recent post somewhere in blogland (Lifehacker?) suggested a strategy for paying your mortgage out early. Whenever you make an ordinary 'interest plus principal' payment, make an additional payment equal to your next payment's principal component.

I can find plenty of amortisation templates for Excel - plug in a term, frequency of payment and interest rate andit spits out the interest and principal components for all payments until the loan is paid out.

Some of the templates even allow you to schedule an additional repayment (eg, 'show me what happens if I kick in an extra $1000 a month"). However, I'm having trouble working out how to model makng an additional payment with a different value each month - as the loan amortises (?), interest payments go down and principal goes up.

Any ideas? I pay fortnightly / biweekly, if it matters. (And no, I don't want to hear about whether this makes sound financial sense. I know the opportunity costs - I just want to see the numbers.)

Moving somewhere affordable!

hamster — Thu, 14 Feb 2008 12:22:58 -0800

Can I sell my place if I'm on a repayment plan for its mortgage? I own a home, but have had trouble making payments on the mortgage--my parents talked me into buying it, but it's been too much to handle on my salary.

I worked out a payment plan with my lender to avoid foreclosure, and will be able to get things back to normal by May.

I'm planning to move across the country this summer, and want to list the place as soon as possible because I know the housing market's crap. How would this work if I'm not up on payments?

Also, my parents don't know that I've worked out a plan--this is a long story about family dynamics. They will be helping me to list the place, but I don't want them to find out what's happening. When will I need to come clean? When we have a buyer? Before I list it?

Thanks in advance.

Done Gone To Debt Hell

miltoncat — Thu, 22 Feb 2007 16:43:10 -0800

Does consolidating your credit card debt wreck your credit history or kill your credit score (FICO)? I was a damn fool in college and in over 12 years, managed to rack up about $13k in credit card debt (I have no other debt, no loans). I have a decent job and am trying to pay it off, but it keeps being two steps forward, three steps back. I have around seven CC accounts. I'd like to get it down to one. Having accounts spread out makes it hard to focus and I am getting nowhere. I know I could handle it better if I had one bill to deal with monthly, but I keep hearing consolidation will kill my FICO score.

I've read Suze Orman and Dave Ramsey, so I need more suggestions besides picking up their books.

Is the car dealer talking out of his hat?

Rc — Mon, 02 Oct 2006 06:42:50 -0800

So I finally bought my first car (not counting the 20 year old brown volvo I part owned for 3 months in Canada). During the 'chat' with the finance person at the dealership he was adamant about two things that puzzled me 1) Consolidating your car loan and home loan is a bad idea, it does not help to repay the debt quicker. The only time people should consider cosolidating debt is when they are struggling with repayments.

2) He advises people that it is better not to repay their car loan early because a car is a depreciating asset.

When I asked him he could not really clarify either of these points. It had been a long day for me so I let it go; but now it is niggling at me.

Yes he is biased; he makes his living getting people to take loans through him. Am I missing something though? I can;t see how they can be true (unless the car is bought by a business and the interest is a tax deduction).

If you can put this to rest for me I would be grateful.

Can I sell a body part?

anonpeon — Thu, 24 Aug 2006 05:37:36 -0800

I can't afford to repay my student loans, entirely my fault, what should I do? Several years ago I took out education loans from Wells Fargo, loans that I have yet to pay on. I essentially disappeared for several years and now the debt collection agency has caught up with me and is attempting to collect. 3 separate loans, totaling about $55,000. They'll settle the accounts if pay half that amount within the next 30 days . I can't afford to pay this. I can't afford to pay the nearly $1,000 in monthly payments to either.

I also have about $30,000 in Federal student loans, which I pay about $200 a month on, which is also getting to be unaffordable, due to mortgage, car and child payments. Plus I got a notice saying the interest rates were supposed to go, which means more trouble.

My wife an I only make about $50,00 a year, bring home about $2000 total a month after taxes.

Yes, this mess is completely my making and yes I've been remiss in taking care of it. I accept that and realize that much of the rest of my life might be spent paying this off. I'm looking for practical advice on how I can straighten out this, please.

I'm not good with money and all of this is extremely overwhelming to the point I don't know what to do.

Is there someway I can consolidate these loans, either as a whole or partial?

Am I in danger of bankruptcy? The house and car are not in my name, they are in my wife's name, could we lose them? What would bankruptcy mean?