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danielv835

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personal_finance_v0.2

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Human: Ok so here goes: to start with I should've known better, and I did try to take every precautionary step, but regardless I fell for what I think is a scam. So I got a text message from a 5 digit number offering to make $400 a week by having Guayaki Yerba mate advertisements put on my car. It said to email if interested. I emailed with the subject "scam?" and the body of "how'd you get my phone number to text?" and they responded immediately with details on the offering, ignoring my question. The biggest red flag was that they would be sending a cashier's check with my first week's pay and payment for the installer, which I was to send to them. So I immediately asked why I would send it and not them, to which they responded it was to establish a relationship between myself and the installer, for if I needed it removed in the future... I figured it was a scam at this point but decided to see how it'd play out. Well, to my surprise, I received a cashier's check in the mail a couple days later. It looks legit, and I figured what the hell, I'd deposit it, and my credit union would deny it if it was fake. Well... they did put it on a 4 business day hold, but it eventually cleared. At this point the guy is now texting (started as soon as I received the check), so he text me to moneygram the money to the installer, which was in Texas (I live in ca). So I say "how is an installer in Texas supposed to install on my car in ca?" To which he explains this is the installer's main office, and he would have a local installer come out. So, stupidly, I take the money out and moneygram it to someone in Texas. The person that's been communicating with me is in MO from what I can tell, a well as the cashier's check, which was in his name, from a credit union in MO. So flash forward to a couple hours after the moneygram, I text him asking about scheduling (he had been very quick to respond and communicate in general up to this point). Nothing. This was yesterday. I text again today. Nothing. Last night I finally told my brother about this whole thing, and he said I should get out what money I have left in my account, as the check could reverse and I'd be negative the amount I pulled out for the moneygram. So I went to an ATM (live on a mountain my credit union is at the base) and pulled out my rent money. I'm basically just trying to figure out what my rights are, and what the best steps to take from here would be. As this is likely a scam, these people received 850 of someone's dollars, and I sure as hell don't have that kind of extra scratch. Please advise. Update: this fucker's still going!! Quick, someone who's really good at this kind of stuff figure out a way I can get his ass caught!! Here's his most recent text: https://imgur.com/a/KP4A4 Assistant: Yes, ANY "JOB" OR TRANSACTION WHATSOEVER THAT INVOLVES YOU RECEIVING MONEY AND THEN SENDING OUT MONEY TO SOMEONE ON THE INTERNET IS A SCAM. Tell your friends this. You might save one from making the same mistake. Yes, the check you received will turn out to be fake and the bank will want the money back. 100%. So you might as well plan to pay that back. The bank will also charge you a bounced check fee, probably an overdraft fee, and they may put on you a list of people who bounce checks, cancel your account, or report you to the police. You might want to preemptively go into the bank and explain that you've been scammed, they might agree to waive some of the fees and put you on a payment plan or something. Sorry. Expensive lesson for you. You don't have any particular "rights" here. You accepted a worthless piece of paper and sent out real money to someone who sent out a spam text message to you. You could report them to the police or sue them for the money, but you have no way of identifying them and they almost certainly are not in the United States. > these people received 850 of someone's dollars $850 of YOUR dollars. Not someone. You. Human: The worthless piece of paper was accepted by the credit union. Isn't it their responsibility to check for authenticity? Assistant: It's your responsibility not to give them fake checks. There are several kinds of fakes: - things that aren't a real check (bogus account number, fake bank, etc.) These will be detected immediately (one day). - real check, closed account or no money in account: detected in a few days. - real check, real account, fraudulently made (not by the account holder): these may not be detected for weeks, until the account holder checks their statement and say "whoa, I didn't write those checks!" and complains to their bank. You might have gotten type 3. Human: Check the update. Is there any way I can get this asshole??

Even if they did get caught, you'd never get the money back.

No, sorry. You should speak to the bank, let them know what happened and see if they can work out a plan. Edit: that plan should be about how to cover the overdraft. You will be debted $850 and there is nothing you can do. I suggest trying to put in enough money to cover it so you're not then hit with daily $35 overdraft fees. You are out $850 unfortunately.

Human: Ok, here is the situation: I work in Law Enforcement making approximately **$34,000** per year in gross. I will be eligible for a raise next month and could be getting a larger raise in about 8 months. My wife makes about **$30,000** a year as a graphic designer working for a small company. we are less than 2 years out of college and have about **$46,000** in student loans left. That number was over **$60,000** a year ago, but we live in an area that is cheap and are prioritizing loans over everything. Our student loan repayment is about **$200** a month minimum. Please allow me to brag on my wife for a moment: My wife is *crazy* good at art, not like "Oh, that's nice" good, but "winning competitions in high-school and college where she traveled to Washington, DC to view her art hanging in the capitol building because she won" type good. She does it all, digital paintings, logos, branding, wood-burning, needle-felting, traditional paintings, custom portraits, cartoons, painting on shoes, arts and crafts. Everything she does is fantastic. She is blessed, plus she put a lot of work into her craft. Her job now has no promotional opportunities being a small company. All she does is design menus, billboards, and coupon flyers. Her long term goal is to work from home with her own art company. She also doesn't want a traditional career because she wants to be a stay-at-home mom and raise our kids (when we have them). We live in a inexpensive area, have no car payments, and no debt other than our student loans. Once we have kids she is going to quit to her job no matter what to raise them. Her working 40 hours a week is not allowing her to have enough time to put into building her business while she works (she is often tired upon coming home and doesn't have the concentration to work for eight hours then come home and put another 3-4 hours into her business). If we are confident enough in her art, should she quit her job now to build her business, knowing that my income alone would be enough to "keep us afloat" for as long as it takes for her business to succeed. It would reduce our gross income by about 45% initially, but sometimes, taking the leap for her dream is worth it. Am I wrong with that thinking? I don't want to end up being that couple that lived the safe life for 5-10 years and never pursued our dreams. And now while our bills are low seems like the best time to do it.

It is very hard to start a business from scratch without any connections, especially art. I started my business on the side and grew it until my day job was limiting me and I was making enough to risk quitting my day job. Has she should about HOW she will make money with art? Not just "selling it" but exactly how she will do that. Will she sell it at shops? Will she do custom art for businesses? How will she market her work. Just because it's good, doesn't mean people will buy it right away. And lastly, if she's too tired after an 8 hour day, she's in for a big surprise. Very few small business owners work less than 40 hours a week when they first start up. Later on, maybe, but definitely not in the beginning. What I can suggest is possibly getting into freelance graphic design work on the side at first. Once she's making some money doing that, she can quit her job and focus on her art while supplementing her income slightly with freelance work if she needs too.

I would say absolutely go for it. On this forum you find a lot of people who like to play it safe. So they will always advocate caution. But if your wife is good at design. If she can do identities branding etc. It's about the easiest field to try out in. And if she makes it work, she will make a lot more than she does now. If not. That's ok. It's not the type of business you have to invest 5 years of your life in to see if it works out. Go for it man.

Human: Hello, first time poster here. My wife and I both have new cars purchased in the last two years. We want to remove this debt by selling them and switching over to used cars, thereby removing monthly payments. How is this done, and is it a realistic goal? Thanks!

You just need to find out if you're upside-down, and with new cars just 2 years in, you probably are. Just check the value on kbb.com vs what you owe. Hope you paid a bunch down.

This depends on whether you are rightside up (your car is currently worth more than your loan balance) or updside down (you owe more on your loans than the car is worth) on the cars. Can you let us know what the cars are, how much you think they are worth, what the loan balance is on each, and what the loan interest rates are?

Human: So yeah, I was doing well at my job, received atta-boys fairly often, etc. I got a better offer for another place (50% increase) and essentially determined that I had no chance of promotion where I was at (I was promised a mid-level but they didn't have the openings so they brought me in at a Junior level with a promise of Mid eventually....that fell apart for myself and others). I had no beef with any of my coworkers. I put in my 2 week notice today and it was professional, I explained that I was just taking a job that would be guide my career to the field I want to be in (IT). They had no issue. 2 hours later, I was brought into an office and fired. They said that they fired me because they didn't like the way I handled it after I submitted my 2 weeks (I literally went back to my desk and worked) and so instead of paying me for my 2 weeks, I'm fired immediately. Is there anything I can do about this? Is there anything that I should be worried about in the future?

Call up your new job and say "Hey, can I start next week?"

Either jump on unemployment for now...take a break or as others have said, call up your new gig a tell them 'I can start sooner due to me putting my two weeks and them releasing me early' and leave it at that. Me...I take the two weeks off to care for personal issues and get ready to go back to a new job refreshed and excited.

Human: Hi I have $1000 I have been saving for a long time and I want to invest it and make it grow. My brother said I should ask this question here. I am 14 and I dont know anything about investing and money. Where do I start and what type of investing should I get started with? I also know that there is sometimes risk and I am inteested in long term and short term. Thanks

Treat yourself with maybe $300 of it and save the rest. I don't think you can really invest at age 14, you'd have to convince your parents to do it. I'd recommend just putting the money in a savings account, even if the interest rate sucks. Or like someone else said, buy a used lawnmower for $100, a gas can for $5, and some gas for $10 and go mow lawns in the evenings for $20 each. That $1000 will turn to $2000 in no time. 2 lawns an evening, might take you an 60-90 mins if they're close to each other. $40 a night minus maybe 3 bucks for gas ain't bad for 14 years old. I don't know about everyone else, but if my lawn was overgrown and a young kid came up and asked to mow it for $20 I totally would.

Buy a gaming pc instead and enjoy ur lyfe, best investment any 14 year old could make TBH

Human: So as the title suggest I need a new car as my old beater didn't pass inspection and I've been trying to work on it to get it back and just replaced the o2 sensor and found out that my drivers side coil spring just committed suicide through being jacked up too many and putting stress on it. That being said I was planning on throwing money at it at the mechanics but then started to realize it might be cheaper to purchase a newer used car and have a payment with a new inspection sticker on it. My car currently needs around 250 for new suspension parts, and also has a misfire code in one of my cylinders, I don't know how much this fix might cost, check engine light won't go out. I've never had a car payment before, I've bought my last two cars used and cash in hand for them, I don't know what I can reasonably handle as far as interest rates and down payments go. My current financial situation goes as follows: * Current Budget for new car ~ 500-600 and whatever trade-in value is seen in my Forester * I start a new job on Monday with roughly 600-700 coming in bi-weekly, i wont get my first check for three weeks after starting (its a temporary state job scheduled to go til around April when my other job starts to hire back people) Any tips on how to get the best financial situation out of what I'm working with is helpful. I don't know if it's worth saving my current car or if it's a better solution to go newer.

First figure out the cost for everything to get repaired if it's under 1k-2k I would fix it and keep it.Also your pay is pretty low and I don't know your other bills but with that income I wouldn't spend more than $8k on a used car which would be around $150 a month for 60 months if your rates 5%.(shoot for lower rate if you can!). Don't get a loan for more than 5%. If your credit isn't good I would look to get a cosigner(like a parent).

It may vary from state to state, but I did want to say in Washington, if your car does not pass inspection, you can take it for repair to one of their certified repair guys. If you pay $100 (or so, forget exact number) towards repairs and car still won't pass (check engine light) they let you go forward anyway. Just something I thought I'd mention, best of luck!

Human: Is this something that we can negotiate? Should they be allowed to charge that much and require that the security be negotiated through them? Fiance and I are trying to penny pinch a little bit for the wedding and this is one area where we could easily save a few hundred if the price was reasonable (even for a wedding). We already have the venue reserved. Anyone dealt with something like this before?

Did you sign a contract? What does the contract say?

It's usually standard that a security guard is there, especially if there is alcohol being served. Though, this should have been told up front.

Human: So when I turned 18 I had a lot of credit inquiries and now I'm finally able to get a credit card my credit score was really high and now it's suddenly gone to shit and idk what to do to fix it? Any tips at all would be amazing. Edit: I have a Kay Jewelers card at recommendation from my bosses friend, being young and told he'd pay it off I thought it'd be an amazing idea since I've been struggling to even get a credit card and didn't know where to start he even offered to pay it off every month and just give me 35$ to do it every month, right now it's a 400$ card and I owe 311$ on it I just went and payed another 35$ because I was so freaked out. Assistant: So to clarify you currently have a credit card? If so then keep utilization (balance) under 30% of max and pay it in full each month if you are able (after the statement gets to you, but before interest sets in) Human: I have 78% of one card use I've been making payments on I was told to keep them at the minimum it's just like a little kay jewelers card tough if I pay more it off would that fix this?

Who the hell told you to pay only the minimum? That's very bad advice. Always pay AT LEAST the minimum, and the more the better. Ideally, you pay the balance in full every month. You do not want to pay interest in order to build credit.

No bad advice pay them off every month!!! Don't spend money you don't have! Your credit will rise over time as long as you keep on it and don't get to many hard credit checks and pay off balances.

Human: Personal finance, I've screwed up, big time. I was at a very low point emotionally, and now I've dug a financial hole I don't think I can get out of. I'll spare you a sob story and excuses, and just say my depression got the better of me, and now I'm in $21,000 of credit card debt. This is on top of my ~~$17,000~~ $13,000 (checked the balance and had this wrong) student loan debt, $1,300 remaining on my auto loan, a ~~$1,400~~ $1,900 (misremembered this as well) medical debt, and my regular expenses. Without any incidental spending like groceries or gas, my monthly minimums are more than I make. My monthly take home is about $1560, and my total credit card minimums, rent, utilities, student loan payment, car loan, and medical debt payment add up to $2,150. I had a good credit score and excellent history before I started digging this hole about ~~$12,000~~ $10,000 (had this number wrong too) and a year ago. I've paid almost entirely on time, paying a day or two late a few times and missing one payment entirely since then. I've only been able to make minimum payments mostly. I used to be on top of this stuff, but its hell when depressed. I'm doing much better organizing myself now and have everything written down now and am paying consistently. I've been borrowing money from my parents to help fill the gap, but they are running out of lendable funds. My credit score is down, but not ruined. However, due to my high utilization, I cannot find a loan to refinance my credit card debt. I've been on the job search for months, and have yet to get a single call back. My industry is only semi-skilled, with good for only high school graduate pay, and little benefits. I'm in the second highest paid position I've ever heard of for this job in my city. So moving within the industry won't get me very far. Long term, I plan to go back to school in a much better field. For now, I'm willing to take just about anything that pays more than I make now. But even if I get the highest paying job I've applied for, I'm still in a financial mess. I'm considering bankruptcy, but I have some questions, beyond is it a good course of action for me. **1. What happens to my car loan? Can I exclude it?** I've nearly got the car paid off, and I've made every single payment on time. August of 2017 will be my last payment. It would be awesome if I can come out on the other end of this with a positive mark for the car loan, but ultimately I just want to be able to keep my car, because it's still got a lot of life left, and I'll be in no position to get another loan anytime soon if I declare bankruptcy. Can I just continue to pay the car loan down during/after? **2. What happens to my bank account?** My checking account is with a bank which also owns about half of my credit card debt and my car loan. I'm assuming if I declare bankruptcy, therefore they get nothing on the credit card, they won't want to do business with me anymore. Can they close my account? Will it be difficult for me to open another somewhere else? Can they also somehow void or cancel my car loan? **3. Does this effect my ability to rent housing in the future?** I know this will greatly effect my ability to buy, but does it affect my ability to rent? I'm ok with staying in my current place for some years if I'll get denied elsewhere, right now my biggest worry on this front is they will decline to renew my lease. **4. Does this effect my ability to get another student loan?** I'm not currently planning on taking out another student loan, but I'm currently enrolled for an AS in engineering at the local community college, which will then transfer to the state school about 90 minutes away. Ideally, I'd like to be able to focus on the program during my senior year and not be working full time. We will have to see how feasible that is when I get there, but taking out a loan for each of the last two semesters is an option that I'd like to still have. **5. Does this effect my future employment?** I know in some instances financial trouble makes one ineligible or at least less eligible for a position, but is this true for every job? Right now I'll literally take what I can find, so I may end up somewhere where I'd have to handle money or financial info. I can understand it effecting those jobs, but would it effect something like an engineering position, which is the degree I'm going for? Thank you for reading, and thank you for any advice/answers. **Edit: Changed a few numbers to be more accurate, as I was going from memory and got a few incorrect.** **Also, thank you for the advice. I'll try to get on repayment plans with the credit card companies, and get my student loan deferred if possible. I'll also be calling the hospital to see if they can do anything for me. I see now that there are options before bankruptcy, and will try those before moving forward with bankruptcy. If I do move forward I will find a local lawyer.**

Talk to an attorney. Do not take legal advice from anyone on reddit.

look at peer to peer lending like prosper or lending club Maybe you already have, maybe you've never heard about it, but you might be able to consolidate and pay off other more high interest loans and peer to peer lending generally has pretty low interest. My experience with 10 years of defaulting on student loans is that it doesn't really affect you that much. I've defaulted, been send to a collector, had my loan bought by a different collecter, been threatened with legal action, etc. My credit is in the mid-high 600's (whatever that means) even after all that. I mean avoid it if you can obv, but if you have to choose which category of debt doesn't get paid this month, student loans are probably more low-impact on the long term than car payment/credit card/rent good luck, I'm 33 and this will be the first year of my adult life that I am not in at least 3 kinds of debt. It's a prison for the poor. Jokes on them though as a lifetime of poor people food is going to kill me from cancer before they can collect haha^I^wwiiiiiinnnnnnn edit: also yeah speak with a lawyer srsly

Human: Im 19 years old and living with a friends family due to family circumstances of my own. I can no longer free load on their couch and am really wanting to move out. However, my finances are the biggest problem. Right now i am working as an electricians apprentice and am making $10.50 an hour, roughly $1370 a month after taxes. I have about $2000 in the bank, but the cheapest rent i can find is about $600 a month. Is it possible for me to afford spending nearly half my income every month on a 1 bedroom apartment? Ive tried finding friends to rent with as i know thats cheaper, but i cant find anyone looking to move out. Any advice is much appreciated!

Alright - this is not going to be a popular post, but I'll make it anyways. That amount of rent is doable, but quite difficult. As others have said, don't even think about it if you have debt like a car loan or student loan. And don't think about going into any new debt if you do decide to go for an arrangement with that much rent. The nice thing is that you are - like you said - an apprentice and will likely earn much more after your apprenticeship is completed. In order to make it happen, the rest of your life is going to have to fit into around $700/month. That means food, cell phone, utilities (if not included in rent), insurance, transportation... everything else... is going to have to cost less than $700 until you are done apprenticing. That doesn't leave a lot of room for fun, which is something you'll want at age 19. Have you looked at student housing? I work in a college town and the student housing here is pretty cheap because everyone's got 3-5 roomates in a 2-3 bedroom apartment. You generally have to be unmarried and under a certain age and a student of some kind in order to qualify.

This only works if you live like a monk and don't have unexpected health costs. You need to earn more money.

Human: Do we really need them if we know the basics? What true benefit do they offer? I feel that they are middle men who would take 1-2% with no added value to an individual with a basic foundation for managing investments. If I ask him to build a conservative portfolio, wouldn't hr just invest your money in safe vanguard etfs? If I ask him to build a risky portfolio with higher then 10% returns, he will simply claim that he will try but obviously can't guarantee it... thus just a person playing with our money. Do they have certain access to information/systems or data that the typical investor wouldn't have? I understand fiduciarys are looking for what is best for you, but what can they really offer? My fidelity and td account works great. Provides a wealth of data. And what about the wealth management brances.. chase wealth management for example. What can they offer? Looking forward to reading your opinions.

You don’t need a financial advisor for investing decisions. However, a financial planner, preferably a CFP(R), who is a fiduciary, can help you with many types of lifetime financial decisions. These include; Budgeting and credit issues Planning for large expenditures such as children and houses Retirement, tax, and estate planning Divorce planning Career development Education funding Fraud prevention Planning for incapacity Dealing with aging family members or disabled family members Decumulation tactics in retirement Social Security strategies Charitable giving Risk management And, of course, the person will review your portfolio and suggest tweaks. A financial planner is a generalist, and will be able to refer you to other needed professionals such as tax advisors and estate attorneys.

I think those types of advisors are good for the bigger fish. Like hundreds of thousands of dollars in brokerage. The rest of us should use Schwab, eTrade, or the slew of other online brokerage firms.

Human: Roughly, I make around 850-1000 a month. I'd like to save up at least 400 a month, but I can't seem to do that. First off, my rent is 400 a month. Second, I spend about 200 at least on weed. I would say that I would greatly prefer to have it in my life everyday, but I feel like in order to save up more, I just can't. What should I do? Work more hours? I'm only able to save around 100-200 a month right now. Food is taken care of.

> I keep spending my money on weed. Don't smoke weed. Or only smoke on the weekends? You'll have the added benefit of a lower tolerance. > work more hours? Absolutely, more time spent making money, less time spent smoking weed. Also look at any other expenses, ALL OF THEM! See if any of them can be lowered. Make a detailed budget, perhaps with the help of Mint, but not necessary. Common categories people overspend in: Food, drinks, alcohol, restaurants, drugs, cars, car payments, cellphones (you should be with a budget provider), cable (cut it), internet (see if you can cut this down), utilities, etc

I was in the same boat the short answer is if you don't wanna quit the weed you need to grow it yourself it's the only viable solution It's easy btw ;)

Human: So I got a raise that was initiated one paycheck ago, and after taxes and such I got around $1,000 and some odd change. In the latest biweekly check I got, my pay fell down to $750 and I'm being told by human resources that it's likely because I'm in a higher tax bracket now, which to me doesn't make that much sense because even if I'm in a higher tax bracket, shouldn't I still be taking home at least SLIGHTLY more than my previous paycheck, rather than a $250+ decrease? At that pay rate I'm not even making 20k a year after taxes. Assistant: No, since tax brackets are marginal, you will always be making more money. There are some exceptions but they mainly have to do with ineligibility for tax deductions. Did the number of withholdings change? I'd compare your two pay checks side by side to see where the differences are. Human: Unfortunately since I get direct deposit I don't get checks or paystubs. Normally they're available online but we changed pay companies recently and they never sent out an invite to make an account so we can see our previous paystubs.

If you are unable to access your paystubs, you need to get that sorted out with HR (or whoever handled the transition) right away.

You are 100% entitled to view your paystubs. Your employer is not allowed to subtract money from your pay without providing you with a full accounting of what they are subtracting and why.

Human: Yesterday I noticed an unusual deposit of around $1000 in my checking account, and then an ATM withdrawal for a smaller amount of money. I called the bank to clarify and let them know that I hadn't done either of those things. The person on the phone told me that a new card had been opened in my account and that I needed to talk with the branch manager who issued it--they would call me back the next day. Throughout the rest of the night, this debit card made an alarming number of purchases to the point where I filed identity theft complaints and froze my credit (per the instructions on this sub), and transferred all of the money out of my checking account. Spoke with folks at the bank again, they told me, again, that it was clear that my identity was stolen and that they'd have a specialist call me during business hours. Spoke with specialist today and, APPARENTLY, someone else with my exact name asked for a new debit card on their account and they were given a debit card to MY account. The bank person gave someone access to my account because of a "human error." Received an apology email from the branch manager today saying that this never happens and that they had closed the other debit card and returned all of my money. They would also use this experience as a training exercise for future employees. This seems CRAZY to me. Is there anything else that I should be doing? Should I just accept the apology? TL;DR Person with same name gets debit card to my account.

This is a major mistake that banks spend millions of dollars and tons of effort to avoid. I can guarantee it is very much a cringe-worthy event for the bank. These sorts of stories do make the rounds and everyone learns from them. Processes, procedures and controls get more robust. I would follow up with the branch manager - to retain your business explain what specifically are they fixing. Let them show you they can be responsive. If you are not satisfied, then change banks. Source: I work on change management for bank processes including card issuance and account opening

Hell no I'd get an attorney asap and see if there's any way you can get something out of them, and then move to another bank. Normally I'm not that guy, but it's a bank. Fuck banks.

Human: Hello friends. ::DISCLAIMER:: I'm only 25, so I'm really not too far removed from this group that I'm yelling at, and I would have said all of this with equal vigor as a 20 year old. There are always a ton of posts in here by people asking for help affording a thing that they can't afford, but it has seemed especially prevalent the past week, and specifically with young posters. I wanted to throw out a little PSA. PLEASE DON'T FINANCE A CAR. PLEASE. I know you think you have to, but you DON'T. Your interest rate is going to be shit, and your insurance premium is going to be extra shit, and you don't need to kick off your adulthood with a gross debt over a depreciating asset! The alternative is simple, and this is how I know. When I was 18, I financed a $6k car for 29.9% interest. I was the fool of fools, and literally no one told me it was insanity, wtf did I know. Fortunately for me, that car was totaled 8 months later, and paid off, and I had learned enough to know that I didn't want to cough up a shit ton of my income towards interest and insurance anymore. I bought a 1992 Toyota Paseo with 220k miles for $800. It was aqua blue, and an absolute wreck. The clutch was shot, so I found one of those on craigslist too, and got it installed for $500 all-in, which I saved up for by limping the car around for a few months. 6 months later I posted the car up for $1400 without being in a rush to sell it, and found a buyer after a month for $1300 and sold it. I bought a 1987 Alfa Romeo with 130k miles with that $1300. It was AWESOME. Seriously, I was obsessed with that car. It had some weird air intake issue in the cold, and I found a guy to fix it for $400, which I again saved up for by limping the car around as-is for 2 months. After about 10 months, I sold that car for $1700, and had some other cash to throw in on a 1995 Mitsubishi Diamante with 90k miles for $2100. It was awesome. Looked nice, drove so smooth. Owned it for 2 years, got a better job. It needed a starter and alternator in this time period, about $500 total. I bought a 2007 Kia Rio5 hatchback for $5k after that, drove that for 2 years, and bought a 2013 Chevy Traverse with 50k miles for 20k and a 2013 Chevy Cruz with 40k miles for 9k, both cash, 2 months ago. (I got a good job.) Used cars don't depreciate like newer cars. People down in that price range want them to go. Financing a depreciating asset is the worst thing that you can do with your money, especially when your young credit qualifies for crappy interest and your under 25 driving record qualifies for expensive insurance. With a cheap ass car, you can get liability-only insurance, which is usually less than half what full coverage costs (which you have to get when you finance). BE SMART. You're here on PF, your mind is in the right place. Be. Smart. Edit/Addition: I want to add one note. The problem with financing any depreciating asset is that you can't get on top. When you finance a new car, not only are you paying majority interest at the beginning of the loan, but the car's value is TANKING. Because of this, if you lose your income somehow, or have another financial emergency, it is impossible to get out from under it. This makes it a huge risk. Another Edit: This is a truly interesting experience. Can PF really not even agree on this basic money-management advice? I'm not one of those "all debt is evil" guys, debt can be great if it increases your cash flow or net worth, but a financed care NEVER DOES. Maybe some rich people will get in here and back me up on this. It's simple, guys. This is a poor use of money. The ONLY argument I could hear is if someone got a CRAZY low interest rate, and used the cash they would have spent to invest and out-perform their interest rate. But come on. When kids are financing cars, that's not what's happening. Final Edit: Okay. I understand that a lot of people finance vehicles under decent terms (certainly better terms than mine), and didn't break their banks. I, again, understand that a large chunk of cash CAN be better applied elsewhere by a savvy investor, but will restate that this isn't generally what happens with someone in this category. I'll make just one more point. A person in this age group is experiencing wild rapid life change constantly. They generally don't know what they're going to do long term, where they'll live, what they'll make, etc. Any financial liability therefore has an increased risk. Even if they financed at 0%, if they have a $300/mo car payment for 7 years on a car that they're thousands upside-down on, their options are limited and their risk of defaulting is high. Sometimes it works out, and clearly it worked out for a lot of people here, but that doesn't make it the best decision. Wait to make long-term financial commitments until you know what you're life is going to look like long-term. There were some factors I didn't think about, and I appreciate this discussion, but I'm sticking to my guns on this one. Debt + depreciating asset = wasted money, as are unnecessarily high insurance premiums. Assistant: I agree with you. So, I guess I was one of the rare instances that it was okay to finance a car. I (22) bought a new car last month for 0% APR, 0 Down. Human: Yes; car companies will offer 0% interest on cars they're trying to clear out. Obviously that's a lot better, but wealth is about protecting your cash flow, so I would still take my route over this. Not to mention that your car, especially when going 0 down, is depreciating way faster than you're paying it off, so you're still way upside down and stuck in this payment. That can be a problem in a jam.

> Not to mention that your car, especially when going 0 down, is depreciating way faster than you're paying it off So add a down payment when you buy the car. Wow, now you're suddenly ahead on the loan.

Yeah, I agree. I figured it was "free" money, and I'm investing it to earn more. Also, I have cash to pay it off right now($20K), so if something happens, I'll just do that instead.

Human: I need to buy my ex girlfriend out of a condo we bought a few years back. It was appraised for 340k and our current loan balance is 246k. She wants 36k to be bought out of the deed. Our loan carrier won't refinance for more than 80% of the appraisal amount. They will give me a new loan of 272k, and I will be able to pull out 20.5k after closing costs. I have my finances in order enough to easily cover the full 288k loan necessary to pull out enough to buy her out. What options do I have? Should I try to see if other lenders will let me pull out more equity? Any help would be appreciated.

>What options do I have? Sell the condo.

Ask your girlfriend to carry a 36K note on the condo. Basically, you have her put a lien on your condo for her portion of the equity. You can negotiate an interest rate with her, and essentially pay her monthly until she gets all of her money back. Basically, its like she loaned you 36,000 at some interest rate, and you just pay it back like you would a car loan.

Human: My fiance just left her soul sapping retail job to focus on the wedding (in a couple months). I make about $1750 a month after tax. We currently have a rent free living situation through the summer, but we want to best prepare for living with a rent payment. When I add it all up we are always just a couple hundred dollars short. Now I've read enough of this sub to know that I should easily be able to live off of 28000 a year, but I can't seem to get it together. I have cut out almost all the unneeded expenses, but still can't quite get the math to add up. Any advice for scrapping up a couple hundred a month? Edit: she quit because I told her to, it was a very toxic situation I won't go into. She is planning on getting another job after the wedding. So I know that will help. Assistant: >Any advice for scrapping up a couple hundred a month? >My fiance just left her soul sapping retail job to focus on the wedding (in a couple months) She could get a job. Most people don't quit their jobs to focus on a wedding. This is kinda silly. Human: Well she quit because she was literally dreading every day of work so much she would get actually sick, her not working has been a world changer and I have zero complaints. That being said, she does plan on getting a job again in a couple months

Why not start looking tomorrow?

Everyone hates going to work. She needs to suck it up. Also she should look to get a job asap. I don't see why she can't work before you get married. You don't make enough to support both of you and she needs to realize this. It's either she gets a job or you work two jobs. Really that's your only options. I'd also say if she hates retail so much go back college or a trade school if she's not going to work.

Human: I'm having some buyers remorse right now and need some outside thoughts on my situation. We're currently paying $1830 a month in rent. I'd like to stay put, but my wife is pregnant with our second child and would like a bottom floor unit with an attached garage. The cheapest apt I could find for the area we're in is $2100 a month. Technically I know we can swing it. We have a healthy savings and no debt. I put down a deposit to reserve the apt but I keep questioning if it's really worth it to move and spend another $4500 in rent. I want my wife to feel more comfortable, and I know she will for sure (brand new unit that's absolutely gorgeous, top quality appliances, attached garage), but I'm so cheap it's almost crippling at times, which prevents me from doing anything that feels like lifestyle inflation.

Do it for your family's sanity.

Yes you could afford it though I think money may be alittle tight but doable(my husband makes 130k a year and we spend $1375 on our mortgage and have about $1.5k for savings left after all bills, food ,retirement,etc and we only have one child and don't pay for daycare). The only reason I would hold off is if you think you will be buying in the next 3 years. If that's the case stay in the cheaper place and save that money for a downpayment. Explain that to your wife too. If you don't plan on buying anytime soon the more expensive place would be ok.

Human: First time posting in personal finance! I'm in quite the predicament right now. I am 29 years old and an assistant branch manager at a regional bank. My base is $38k a year with bonuses of up to $5k per year. I received an offer from another bank for a relationship banker with a base salary of $45k with bonuses up to $10k per year. Benefits are similar. My job matches 100% up to 4% for the 401k Match, the new employer matches 6% up to 100% after a year of employment. I told my manager last week, and the regional manager has talked to me about matching my offer. The director of banking for New York State even called me to talk to me about staying and they are willing to match the offer. I have been ranked as a top 3 assistant manager for the last 2 years at my current bank and have been here for 3 years. The market share of my current bank is 5% in my area, the bank that offered me the job has about 30-35% market share with back office jobs and much more advancement opportunities. My current job has very few jobs outside of the retail banking field. So the only way I would be able to get promoted would be to a branch manager position (60K+) or a Licensed Financial Consultant (50k). I've built up quite a network of connections and proven sales ability at my current bank. My regional manager brought out how I would be starting over at a new bank having to prove myself all over again and competing with employees that have been at that bank for a longer period of time and will be difficult to move up. I am pretty comfortable in my current job and only applied elsewhere because of a few employees leaving my current bank for pay raises. I have a phone call with the director of retail banking and my regional manager tomorrow on what decision I want to make. The future I can have at the other institution seems like to much to pass up. What would you guys advice in doing? Would accepting the counter offer negatively impact my future ability of employment at the other financial institution? I've been going back and forth for the last few days. Any feedback would be greatly appreciated! =) Assistant: Sounds like the new gig is better in every way than the old one. You're moving up to a bigger market, they pay better, and the 401k match is better. You excelled at your old job, so my guess is you'll have little trouble excelling at the new place. If your old employer wanted to keep you, they should have offered you a raise earlier. Human: This is exactly my thought. I told them I needed a raise to stay at my current job, they just gave me a 5% raise. My old base was $36k, now $38k. I was the number one ranked sales rep in the region for over 2 years and got no appreciation at all.

No application at all walk

Sounds like a no-brainer, OP. Don't burn your bridges but definitely enjoy your new job.

Human: I worked four years at my last job and I'm 29. My wife is a housewife and I have a 4-yo. This January my old employer has ceased wage adjustment on the staff and the company was going out of business gradually. I asked my boss what his plan was and how I could do better. He was being vague. He couldn't even promise a number. Being seriously concerned about my own career, I quit. I do C/C++ coding on embedded Linux. I guess this industry was growing fast in China like, a decade ago? Anyway, not many embedded device developers can go higher than $40K/yr here. A waitress here earns about $7K/yr, FYI. Internet is trending like crazy. An entry level position of server deployment can easily earn more than $40K/yr. I tried to get a job in that field but was turned down after some interviews. Apparently they don't want an inexperienced, 29 years old guy, although I stated that I was willing to start as an internship. After two weeks of job hunting, I took a job in the same industry. Yeah, embedded Linux again. It's a $25K/yr job. On my first week, I was really frustrated. Everyone here is working overtime. The official work hours is 9 to 6. But they make you check in before 8:30 and you can see PLs going to a meeting at 8 pm. Sometimes when I'm about to fall asleep on my bed, my phone still beeps and it's someone at work discussing with each other. I feel like I don't have a life anymore. Moreover, with no free time at work, I can't learn new skills. My code quality is good. I have shallow understanding of Linux. But do I know TCP? No. Database? No. Android/iOS? No. I'm worried about my next stop. Say, what if I work here for a few years and I have to go for a better job? It scares me that all my knowledge gained here will only be useful if I stay, that this industry is going down hill and I still lack the knowledge for another grossing industry. Dear /r/PF, what do you think? TL;DR: Mediocre software developer stuck in a low-yielding industry. Too old to start over.

Never too old to start over. Just gotta figure out how to make it work... Maybe that means putting an hour a day into learning app development, even if it means losing sleep. Remember, this job is only a stepping stone. You have greater things ahead.

Oh, honey, no, you're nowhere near too old. I didn't even become a programmer until I was 30, and I did mostly C and C++ for years. These days I'm mainly a Java programmer, and I also have a few other languages on my resume. I had opportunities to learn on the job, but if you don't have that, you can do it on your own time.

Human: Hi so this is my first post ever, but I'm in a bit of a pickle. I started college in September of 2016 with all of the costs covered by loans and grants, plus some work study because I am very low income. I ended up having to leave college in October because my mother is disabled and she had a stroke and I was needed to take care of her. When I went to the office to withdraw, they didn't tell me that they were cancelling ALL OF MY LOANS and instead of just having the loans taken out for when I go back to college later, I was going to owe the college itself $3,000. I signed whatever they gave me because I was in a huge hurry and needed to leave the next day. Now I owe them $3,000 by TODAY (a little late for that). They said they are now going to report me to the credit bureau and I could owe an additional 50% of what I already owe and it will affect my credit score badly. I have no clue what to do. I have $9 in my bank account. I'm only 19 and my credit score is going to be screwed before I even have a chance at life. I've basically lost hope. Any advice? Side note: I was taking a personal finance class while I was there. How ironic.

Generally, when you take out the loans, you agree to the terms, which generally mention cancellation if you don't attend or maintain SAP. What would generally happen now is you have a debt to the university. You can try to negotiate with them and see what happens.

Write a letter to your representatives in government.

Human: For the past 7 months, I've lived in an almost brand-new apartment complex near downtown Nashville. In order to attract occupants to fill up the vacant units in the building, the complex advertised a 'New Move in Special! First 2 Months Rent Free!' Being the broke, recent college grad that I was at the time, I relished the idea of being able to establish myself in a new city and build up a war chest from $$ I would be earning at my new job. This 'deal', on top of the quality of the complex itself, led me to sign a 12-month lease. Fast-forward 7 months and I receive a 1099-Misc form from the property group that manages my complex. The amount listed is the exact amount of 1 month's rent, $2500. What began as confusion and bewilderment quickly developed to boiling anger as I realized what had been done to me. Instead of simply not charging me for rent for the first month, my complex had asked me to pay my rent in cash. They stated that after I had done so I would be reimbursed with $2500 in prepaid visa gift cards. What they didn't mention was that because they gave me a cash disbursement, I would be liable to pay taxes on the $2500 I received from them, which, as it stands now, will cause me to pay an additional $500 for money I never even had the opportunity to spend. My question to those who have made it through this long-winded explanation is what is the best way to approach the management at my apartment complex on this issue? TL/DR: The property management group that owns my apartment complex used an accounting gimmick which allowed them to show a falsely inflated profit margin. As a result of their practices, I now have to pay an additional $500+ in taxes.

IANAL but wouldn't this be a rebate or a discount or even a gift but not income?

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I have online banking and I noticed this glitch. There was no major payment on my part.

Do you have a question?

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: [Throwaway for obvious reasons] I don't get payed overtime because "you can only work 40 hours", even though often I am being asked to stay overtime or HAVE to stay overtime. They just add the hours to next week's but if it surpasses 40 hours then it just adds up! Is this wage theft? I said nothing when was told about this but I decided to read up on it since my last job sometimes required me to work over time and they did pay overtime. I get payed hourly, minimum wage. The state is NJ. If this is indeed wage theft, what can I do about this? I am afraid of being fired since I need a job or I starve. If I end up reporting this to my employer I am afraid I will find myself in the street over the smallest detail. Also, my coworkers seem to not be aware (or don't care?) even though some of them are even more affected by this. Please help me reddi!

It very well could be and likely is. http://lwd.dol.state.nj.us/labor/wagehour/lawregs/nj_state_wage_and_hour_laws_and_regulations.html Your recourse is to report them to your states department of labour

I'll echo everybody else's suggestion to document everything. Get as much information as humanly possible. While you are doing that, start applying for other jobs and be prepared to quit/let go from your current position. Once you have secured another position, then you will be able to contact the DoL without worrying about recourse from the employer, being fired, filing for unemployment, etc. If it is a large enough company, and it is a persistent effort by them to circumvent OT rules, you can contact an attorney and sue them for your wages, and potentially punitive damages.

Human: Hi, I'm currently working as a software consultant and it requires traveling a lot. I really like the city that I'm currently in and have started to apply for a job (one application this week). I have one year experience and my cv is a bit messed up, because it has a 9 month gap between graduation and first job. However, I have a A-level computer science degree and a certificate related to my field. My current employer is looking to send me into another city soon. I currently have 20k saved up. Should I risk it and quit at my current employer or will it fuck up my cv too much?

It's always easier to find a new job while you are employed. I'd be less worried about your CV than about your finances and remaining employed while you look for something else.

Do not quit your job before having another one lined up.

Human: I have about $15k left on a 120 month term student loan of $25k. I see ads on credit karma and elsewhere with amazing savings on refinancing (795 credit score), but when I go to apply University of Phoenix isn't an option. I know that school sucks and isn't really a school, but it got me where I needed to be in my career. I'm not proud of it or anything, it was jus a box that needed checked. Does anyone know why refinance companies won't take student loan debt from UoP alumni? I mean Mohela owns my debt, not UoP, so why does it matter? Anyone know of a company that does refinance UoP student loan debt? Thanks for any direction this sub can provide, I couldn't find anything online about this subject.

just curious, why are you trying to refinance? You seem to have a good career, are you making good money? Depending on your income you could pay this off in a year so the APR probably isnt going to kill you.

You may find these links helpful: - [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: 26... ~110k salary. Live at home. Rent is 500/month. However I want a Lexus ES or GS (used). That'll run me 35-45k (2013). Should I do it? Cash or get into a loan? Or keep driving my civic and save up for an apartment?

Nooooo, cars are deprecating assets. Buy a house, move out.

Absolutely not. Although you have quite a high amount of salary for someone your age. Do not ever splurge on a car. I have an '03 Toyota Camry with 150k on it. It's obviously not the best car in the world and drives Iike a boat. But it's comfortable and gets me places that I need to be. If I were you, and if you really feel the need to buy something higher end. Do it only for comfort. Silent cabin, smooth ride, heated seats etc. Comfort that'll go a long way. Get a new Toyota Avalon. -Or base Lexus.- I'd get the new Camry coming out this year that runs on a new platform. Get a V6. It feels plenty powerful enough to satisfy.

Human: In 2014 I had a peritonsular abscess that caused me to go to the emergency room three different times in one week (each time in extreme unbearable pain) because the time before, the abscess would not be taken care of with what the ER doctors decided to do. Doctors did not want to perform surgery to remove the abscess, even though I wanted it to be taken care of immediately because of the unbearable pain, and insisted that antibiotics would take care of the problem and surgery would be done as a last resort. I went home, but not before they gave me local anesthesia (long needle straight to the back of my throat) in order to puncture the abscess with a needle and drain it. Second time going to the ER was a repeat of the first, and it wasn't until the third that I was admitted, and surgery was performed to split open the abscess completely so it would not continue to create pus. I received a hospital bill for each of the three visits to the ER plus the cost of the operation. The combined total was less than $500 in copays, however I was unable to pay it a total the time because I was in college, and the payments ultimately were handed off to a collection agency. Thankfully I am now in a position where I'm able to pay off this debt, however I can't help but feel that I would not have incurred the cost of the copays in the first place, if the hospital recognized the severity of the abscess and performed the operation in the first place. Before paying the collection agency in full, is there any possibility of somehow bringing these points to the attention of the hospital, and would they be able to do anything about the payments now due to the collection agency? If not, I assume I can make some sort of negotiation with the debt collectors, but is the situation with the hospital itself worth mentioning/would it likely be helpful in the end?

Surgery comes with complications so surgical procedures are almost always a last resort. You were probably told to contact your PCP for further evaluation and definitive treatment, as emergency departments are for treatment of *emergencies*. Additionally, patient satisfaction is inversely correlated with patient outcomes, so the doctors had no good reason to go straight to surgery just because you wanted it. Contact the connection agency and offer less with the condition that they remove the mark on your credit report.

You may find these links helpful: - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) - [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections) - [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I mostly keep my balance to zero, am I doing that wrong?

This is actually based on modeling going back years. Historically those with a 0% utilization rate have a lower credit scores than those with some utilization until you get to 30% utilization or higher. Here is a link to an article on it, [Utilization versus average credit scores](https://www.creditkarma.com/article/CreditCardUtilizationAndScore), and while it predates current models this still stands true. In my opinion, the thought is by not using your credit you have not proved you can use it effectively. They prefer a long term proof that you can handle debt correctly and make payments on a regular basis.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: What would be the current best option as far as cash rewards cards go right now? Is there any one card that does it all (or well enough?)? I've just started reading and see some suggestions to use a combo of 2 cards. Till now I've just used a BOA cash back card. 2017 I'm trying to become extra responsible and be proactive.

If you shop at Costco the Citi doublecash plus the Citi Costco card is a powerful pairing. 4% on gas, 3% on dining and travel, and 2% everywhere else. I use those 2 plus a Chase Freedom (5% in a changing quarterly category).

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Original story here: https://www.reddit.com/r/personalfinance/comments/5ik7s6/bank_error_in_my_favor_collect_1500_butthe_bank/ ***Quick backstory***: Went to a broken co-op ATM and tried to deposit $300 cash. Why broken: ATM didn't physically take cash, but thinks it did. I tried three times. My Credit Union said I deposited $900, but I didn't AND I had $300 in hand. Through a series of misfortunes, the bank deposited $600 more, so my account was $1500 in the black. **UPDATE**: Over the past three months, it's been a crazy ride with my bank account. BA = Bank Account CIH = Cash In Hand * Dec 16, they deposited $300 more. BA: +1800, CIH: 300 * Called and bitched even more. They put a hold of $900 (the actual disputed amount), and promised they'll reverse the recent mistaken additions. * Dec 18, they took out $900. BA: +900, CIH: 300 * Feb 15, received a letter stating "the deposit from Dec 9 in the amount of $300 has been resolved and your case is closed." Checked the bank account... BA: +900, CIH: 300. I was scratching my head, but I decided to let it ride. * Feb 27, Curiosity got the best of me and I decided to finally call and get a status update (and to see if the resolved money is actually mine). "Well, the first case of your $300 is resolved and the deposit *is confirmed* (!!!). A decision on the remaining $600 will be made in two weeks. After all the disputes are resolved, we will lift the $900 hold.".....AAAAAAALRIGHTY THEN! I promptly ended the conversation. BA: +900 and they say 300 is mine (!!!), CIH: 300 I'm now currently ahead $600 on my credit union: I have $300 in hand and I now have an extra $300 in the bank! This shit is turning comical. I'll see what happens in two weeks!

I feel like it'll turn into something where they'll say you owe them money

There is an episode of Frasier like this! 😂

Human: ### New members, please read through the [New User Orientation](http://www.reddit.com/r/personalfinance/wiki/newuser). Instead of posting individual threads for positive success stories of how you've funded your emergency fund, made progress on your debt, saved for a future goal, reached a certain net worth, or anything else you would like to share, let's consolidate everyone's stories into one weekly thread! *Make a top-level comment if you want to share something positive regarding your personal finances!* For past Triumphant Thursday threads, please search the [Weekly Archive](https://www.reddit.com/r/personalfinance/search?q=Triumphant+Thursday+author%3AAutoModerator&sort=new&restrict_sr=on&t=year#res-hide-options).

I finally hit $1,000 in my savings account. It's the first time in like 5 years, and it only took me a short while now that I started budgeting and turning things around.

This month the Hubby and I paid down $4,000 of our CC debt with only $3300 to go! Thanks to PF for introducing new ideas and suggesting I look at how much a month we are losing in interest!

Human: I have roth ira and 401k accounts both of which are primarily invested in target date 2045 mutual fund. since this mutual fund is invested in international investments, and would generate income from those international investments, will it make tax reporting complicated when i start receiving payments when i retire?

No. If you own a fund in a taxable account that contains international stocks and bonds that are subject to foreign taxation, you may be able to deduct some of the gains off your taxes to account for foreign taxes paid. This doesn't apply to tax-advantaged accounts, and even if it did it would reduce your taxes owed, and wouldn't complicate your taxes too much. In terms of foreign asset reporting requirements, [you do not have to file IRS Form 8938 or Treasury FinCEN Form 114](https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements) for foreign assets held within a domestic mutual fund.

well the fact that they're retirement sccounts means they're tax free (not really). Roth-> you pay when the money is coming in. traditional -> you can deduct from paycheck pre tax

Human: Hi All! I just opened a Roth IRA through Vanguard. I am already contributing to employer 401k. What is a good fund to start with? I am 28.

A lot of good advice here, but I just want to applaud you for being proactive regarding your retirement. Keep it up!

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Does something like that hurt my credit? Regardless I don't want the business tied to my address anymore. The wording on my credit report was "This address has pertained to a business; finance-insur-real est service". It was a home appraisal company. I am not sure if the business still exists but when you search my house on Google maps his company comes up. Assistant: Report it as an error to the credit reporting company that lists it. Human: Do I just call Experian? I pulled the report online and there was a dispute button for a lot of points on the report but that was not one of the points that I could dispute.

http://www.experian.com/blogs/ask-experian/credit-education/faqs/disputes-faqs/

Call them and file the dispute on the phone.

Human: I am in need of some help and advice about my finances here, and reading this sub has helped me in more ways than I could imagine; so I wanted to reach out for some advice. I'm 24, and I deferred my college loans for my first year until I got a steady job. On the interim, I took out a loan to get a certificate in order to nail down said steady job. I also have a car, which I'm paying for (so much regret there - don't get me started), and I have a credit card. My "savings"/secondary checking for my rainy day fund is $3535.31. My credit card has a balance of $2910.32 Certificate loan: $3418.43 Car: $3742.16 Thankfully, I now have a terrific job, which has provided me with an okay income (sufficient for someone my age), and I'd like to get this debt pieced away before I start making income-based student loan payments. I know I should pay off the first thing that has the highest interest - so my credit card. I'm debating if I should pay it off entirely this month, and then pay off that certificate loan in $1,000 increments. However, that doesn't leave me with much leftover in my rainy day fund. The car loan I'm not necessarily worried about. Oh and I also failed to mention I'm trying to go to law school this fall, so I'd like to boost my credit score. I'm also wondering if I shouldn't jump the gun, and just make $500 payments to each of those two loans per month so I don't shoot myself in the foot as far as savings, rainy day needs, etc. I know I have a decent amount of debt, but I should also note that I graduated college with pretty much no credit, so I took on some debt to build it. (Adulthood.. not my favorite) Really any advice is beyond appreciated. Thanks in advance!!

I wouldn't completely deplete your "rainy day" fund. If an emergency comes up and you've been using that to completely pay off your debts, you'll be in even more trouble. I'd say pay sizable amounts toward the debts while still stashing some away for the emergency fund. Making payments on time and not causing the debt to get hit with the interest will help your score.

You may find these links helpful: - [Budgeting wiki page](http://www.reddit.com/r/personalfinance/wiki/budgeting) - [Spreadsheets section of the Tools wiki page](http://www.reddit.com/r/personalfinance/wiki/tools#wiki_redditor_created.3A) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: My friend whom my family helps take care of because her own family is incompetent. Found out while doing her taxes for the first time that her credit score was ruined. Her mom had been putting bills under her SSN. She's still under 18 how do we begin to help her fix it? I'm not going to just stand by while her mother also tries to ruin her future.

Well she doesn't care what happens to her mother on the matter anymore. She wants it fixed, we're just unsure where to start. So I guess we will start wit the police report.

http://www.idtheftcenter.org https://www.usa.gov/identity-theft https://www.consumer.ftc.gov/features/feature-0014-identity-theft /r/personalfinance identity theft wiki

Human: So I'm 17, work part time. I had an automatic PayPal payment that went 14 cents over my overdraft. Typically this charges me a 40$ fee. Instead it cancelled, resent, and cancelled the payment multiple times, causing me to rack up 180$ in overdraft frees, since it when over multiple times, but was cancelled every time. Is there anything I can do? 180$ is a weeks pay for me. I live in Canada, bank with CIBC

So.... did you talk to the bank?

Only thing you can do is talk to your bank. They probably can remove some of the charges, but it doesn't mean that they will. I hazard a guess on a 14 cent overdraft they may be lenient with you.

Human: So apparently somebody claimed my SSN as a dependent. My mom says she didn't claim me as a dependent on her taxes, but she entered me in somehow on my siblings fafsa. I don't know exactly how to fix this because I really have no idea what's wrong and also I'm new to filing. Has this happened to any of you guys before?

You can file by paper and mail.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: So a few months ago, I was ready to pull the trigger on a car at a dealership, but for an unrelated reason, did not end up moving forward. Last week, I purchased/financed a small amount on a different car. When they ran my credit score to approve the loan, my score came back much lower than I anticipated. I looked into it and saw that the previous dealership ran 5 hard inquiries (all in the same day), which explained in my credit report why my score dropped roughly 40 points. I've never heard of a dealership running 5 hard inquiries. In fact this last dealership only did 1 hard inquiry and was still able to give me a great rate. Is there anything I can do to redeem this? Should I call the first dealership? Should I call the credit agency? Any advice would be greatly appreciated

It's very common for a dealership to submit applications to many banks. 5 is not at all unreasonable. I seriously doubt it affected your score 40 points. Much more likely is that your credit % utilization is a little higher now or something else is slightly different. Also FYI there are different formulas used to calculate your score so that could also explain the difference.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: The Door: http://imgur.com/gallery/nWHQT My wife and I paid off a large chunk of our student loans last month ($8,000). The problem was it didn't really seem satisfying, it was just money out of our account. Similar to pulling rings when counting down the days until Christmas; we decided to put 1k squares covering a closet door. Every time we pay 1k off our loans we pull down a square. Certain squares have goals on them. These are things we can do once we pull the square off the wall. I think having a visual like this will really motivate us to get this debt paid off sooner rather than later. TL;DR Cover a door in paper. Pay student loans. Take down paper. Complete goals as you hit them.

What a great idea! My husband and I made a paper chain with links representing each 2K of our debt. Every time we pay down our debt by 2K, we cut a link. It's so motivating!

I don't understand why people struggle with the motivation to get out of debt. Seriously, grow a set already and just suck it up and do it. Set it up on auto-pay out of your account and knock it down as soon as you can, you'll thank yourself a 1000 times once it's gone. You racked up the debt through your own life decisions, be a man and accept responsibility and pay your debt without all the whining and histrionics

Human: I graduated college in May, and I started my first full-time job in July. I’ve been paying much more attention to my finances since I’ve started having both real income and real expenses for the first time in my life. Since the new year I’ve been tracking all of my expenses to try to generate an accurate budget for myself -- see where I’m currently spending my money and assess how I *want* to be spending my money and adjust my habits accordingly. Here’s where I’m at right now: #Demographics * Age: 23 * Marital Status: Single * Location: Major metropolitan US city * Credit Score (via CreditKarma): TransUnion: 758, Equifax: 760. [Details](http://i.imgur.com/4bqmxZ2.png) #Goals * Work towards being debt-free while considering them “negative investments.” Meet at least minimum payments every month, but contribute more when eliminating negative interest from debt outweighs the potential positive gain I could get through investing * Meet Roth IRA, 401k, and HSA maximum contributions * I have some longer term goals that include saving for a house and future children’s education, but they’re a little further out and not really actionable just yet #Income * Full-time job: $68,680/year; After taxes and contributions this turns into biweekly paychecks of $1,611.98, or $3223.96/mo. This is at a large company and I am 100% confident that my job is secure for at least the next year. I am generally confident further out than that as well but, hey, ya never know. * Lyft driving: Variable but about $25/hour pre-tax, after I account for gas and value loss due to wear and tear on my car. Roughly $500/mo pre-tax but obviously depends entirely how much I drive in a given month. #[Expenses](http://i.imgur.com/F5v3Rth.png) * These are figures that I generated by assessing my spending for the past two months - my current spending habits. I am going to adjust my spending and my budget based on where I think I can easily cut down. None of these numbers are set in stone, nor should they be considered a model for others. * In January I spent $1200. In February I spent $2822 (which includes a splurge weekend and a bi-yearly car insurance payment). On average I expect to spend $2394, so these two months seem within reasonable month-to-month variability to me. * My rent, internet, and electricity are being split with my roommate. These figures are what I pay after the split. * My EZPass cost is so high because I am currently driving to work and paying a $5 toll per day. I tend to pay this in a lump sum of $300ish so I’ll have several months with $0 for that. I currently save 30 minutes in the morning by driving vs taking the train ($2.40/day). I am happily paying an extra $2.60 a day to sleep an extra half hour. Next year sometime my role will change and I will be able to take a free shuttle to and from work without as much time lost, so this cost will go down in the future. * I listed Electricity in Irregular because the variability is extremely high. One month we paid $10 per person, another we paid $90. We do pay on a regular monthly basis, but because it’s not really a regular number that I can definitely count on being consistent, I consider it irregular. My other regular expenditures have no variability. Part of the reason it is so variable is I live in an old building with extremely bad insulation and windows out into an alley that I’d rather not open. This is something we are considering about staying in this apartment for next year. * Speaking of my apartment, our rent is going up from $2,195 total to $2,300 next year, $1,150 per person, which would get me to 47% of my expenses are rent. I’m not exactly thrilled about that and there are other potential advantages to switching apartments, so that might help. * My car insurance is a twice a year payment of $437 so 10 months of the year will be $0 here * I try to follow /r/churning for advice about how to maximize spending utility in the form of credit card rewards. I want to take about 3-4 flights a year for travel and I think the best way to accomplish this cheaply is responsibly managing travel rewards credit cards. I am extremely careful not to overdo this, because I know mismanaging it slightly can have major repercussions. I am currently just using one card at a time to make sure I can handle it without screwing it up. #[Debts](http://i.imgur.com/sCTmstH.png) * My three student loans are through Nelnet, and I am paying them off with a credit card to get extra bonuses for cheaper flights in this coming year. I am thinking of these as negative investments. So if I have $1000 extra in a month that I want to somehow save, if I think I can make a 6% return in some investment, [that should outweigh the 4.66% return](http://www.calcxml.com/calculators/pay-down-debt-or-invest?skn=36#calcoutput) I would get by investing in paying off my debt. More about my investing philosophies below. * My “car loan” is money that I owe my dad for various things, the bulk of which is $4000 from purchasing his car. This is a 0% loan and he doesn't really want monthly payments from me right now. He would rather me meet my retirement savings goals before paying him back. He trusts me to pay him back eventually, but developing a solid base of long-term savings is more important to him and to me. I know how big of a gift this is, and it’s the biggest reason I started tracking my expenses. The better I understand my spending, the better I can understand how to meet my savings goals sooner, and the sooner I can pay my dad back. #Investments #####[Long-Term Investments](http://i.imgur.com/1Np6fi5.png) * I am currently in the process of changing my T. Rowe Price account to a Vanguard account. This is almost exclusively to lower the fees on these accounts, which are the majority of my long-term savings. * I want to be more diligent about correlated investing. I know some of my holdings are correlated, but I'm not quite sure how best to go about it. For some reason having 75% of my money in a 2060 Target Fund seems like too easy of an answer. I saw [this](https://www.reddit.com/r/personalfinance/comments/5on997/a_map_of_vanguards_equity_mutual_funds/) post with a map of Vanguard funds and am thinking of focusing on VTIAX, VDADX, VEXAX, VFIAX, and a target fund. Is this a decent distribution? Trying to balance dividend yield with tracking the market as a whole and low fees. * My bitcoin investment is mostly a just-for-fun investment. I appreciate the volatility of Bitcoin but it’s an interesting idea and since its inception the currency has been an extremely good investment. If I lose all of that money, it’s not the end of the world. Plus I can purchase Bitcoin with a credit card to manufacture spending if I have to. * I am contributing the maximum to my HSA, $3,400 per year including $1,000 from my employer. I know you’re “supposed to” contribute to 401k before HSA but I think there’s a psychological advantage to maxing at least one of these accounts asap. * I have about $1800 left to contribute to my 2016 Roth IRA. I am planning on making that payment once my switch to Vanguard goes through, and meet the 2017 contribution limit by December. * I am contributing to my 401k at 5%, with a company match of 100% of the first 4%. I am fully vetted. This amounts to $8,241.74 per year after the match, well short of the $18,000 yearly limit. I view this as my largest area for improvement. After I meet my Roth IRA maximum contributions I am going to move up to at least 10% contribution to get closer to that $18,000 limit. #####[Short-Term Investments](http://i.imgur.com/8KKhalq.png) * I'm investing in individual stocks using an app called Divy, which lets you invest in fractional shares, as low as $10 of a stock with low commissions. * Full disclosure - a friend of mine works at Divy, but I am not trying to promote their product. I am simply trying to get advice on if this is best way for me to be investing in my current situation. Since my friend works there he got me into the beta version, which was commission-free. I am wary of this coming off as an advertisement, so if this an issue I can remove this portion of my post, but I view it as relevant to my financial situation. * I'm currently doing well narrowly beating the market since I started in April, and moreover I enjoy it. I got into stocks a few years ago and now with more time and money to save I have been paying very close attention to the markets lately. * Fractional shares allows me to be well-diversified with only ~$2000. I'm in 27 different securities, but balanced well across all of them despite a large variance in share price. * The money is virtually liquid in this account - it takes about a day to transfer to and from the app so I consider this basically a portion of my emergency fund. I am comfortable taking on that risk at this point in my career, and I think I understand the drawbacks of a taxable account. This is an area where I am seeking the most advice because I think I'm balancing risk appropriately but I'm not positive. #Checking Account * ~$5,700 in three different banks * This is about 2.5x my average monthly expenses. I am trying to be lean enough with the amount in my checking account without taking on undue risk in what is admittedly a low emergency fund buffer. ------------------------------------------------------------------ #TL;DR Is my investment strategy appropriate for my situation? Am I balancing retirement, short-term savings, and debt repayment appropriately? Any feedback at all on the way I'm handling my finances is greatly appreciated Thanks!

> I am contributing the maximum to my HSA, $3,400 per year including $1,000 from my employer. I know you’re “supposed to” contribute to 401k before HSA but I think there’s a psychological advantage to maxing at least one of these accounts asap. I mean, technically the tax advantage of deferring into your HSA is higher than the tax advantage of deferring into your 401(k), because you can skip payroll tax too. Though there are a bunch of countervailing reasons why 401(k) might be better: typically the HSA will not let you invest the first $1k to $2k, so the HSA gets lower overall returns; often the HSA has a more mediocre selection of investments and might have higher fund fees; the HSA account fee is typically higher than a 401(k) and less likely to be absorbed by the employer; the HSA money is locked away until age 65, rather than 59.5. That said, the HSA is overall more tax-efficient and maxing it is a fine strategy.

You're doing great! I'd aim to pad the emergency cushion some more (ideally by making regular contributions with the goal of getting to 6 months' expenses) and put it in a better-yielding online savings account or rewards checking account. Don't count on the divvy money as your emergency fund - the time when you need the cash might be the same time the market takes a swoon. Keep long-term investments for long-term horizons and short-term investments for short/immediate horizons. As for the correlation of your investments, yes the 2060 target fund may be an easy answer - because it is supposed to be. By design, it is intended to be an all-in-one solution and relieve the investor of the burden of asset allocation and rebalancing. So nothing wrong with going with that. But understand that adding in VTIAX, VEXAX, and VFIAX is going to duplicate market segments already in the target fund. So you're not really diversifying as much as duplicating. The target funds at Vanguard are made up of the index funds in which you're investing. And VDADX will also duplicate holdings already in VFIAX and VEXAX. Not that this is bad, but just understand that adding this isn't diversifying but doubling down on dividend growth companies. Hope this helps. Keep up the good work!

Human: Getting 2500 for my tax return. My Cc is at $1800. Time to pay it down, how would you recommend I approach this.

Pay all $1800 as soon as you get the tax refund. Than sock the other $600 into an emergency fund, continue to slowly build it up each month. Spend $100 on yourself.

You may find these links helpful: - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) - [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections) - [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I recently received an offer to work at a well known company in California, making nearly twice as much as I do now living in Arkansas. I currently work at a well-known fortune 50 making 60k. However, my SO works at another local company making 40k-120k (generally 80k, but it varies based on completed goals). She is a hard worker, so its never under 80K. She is a claims adjuster. The company in California is small in employee population and is likely to grow significantly over the next decade, but the general population knows who they are. My current company is fully grown and owns their market worldwide, but only IT professionals would really know and understand who they are. I'm conflicted because this is a GREAT opportunity for me, while my wife gets shafted from her great job, and we collectively would make less in an area that costs more to live. However, LA has plenty of jobs so she would be able to find one quickly as she has the skills and degrees. Long term this would be a great move, but I'm just not sure how really calculate the difference in cost of living and how to really compare these two situations. I'm so conflicted. Please help! edit: The job is in Santa Monica.

You should be talking to your wife about this as it is a drastic lifestyle change. Maybe take a short trip to the area? Get a feel for it. Not much we can help you with here.

This is something you need to discuss with your wife to see how she feels. There are too many tradeoffs and subjective factors to analyze it 100% objectively. You need to see how she feels about living in the various places, how she feels about her job in AR and her chances in CA, and so forth.

Human: I bought snapchat stock but I dont know how long i should hold on to it for. I honestly dont think this is a long term company in anyway. idk halp.

Nobody else knows either.

You may find these links helpful: - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: My fiance and I are going on a week long vacation soon- were going to New Orleans for St paddys day for 3 days, and then taking a 4 day cruise that leaves out of New Orleans to Mexico. We would be in NO on a Thursday-Sunday, and then the cruise from Sunday-Wednesday, and fly back Thursday. While i'm super excited, I can't help but think that now isn't the time for a week long vacation. In the last year we bought two houses (one to live in, one investment), and are getting married in May. Even though we make a combined 130k a year, there were a lot of problems with one of the houses that pretty much drained our savings. We are just starting to recover now. After doing the math, I found out that if I go for the whole week, after paying for the airbnb in New Orleans, paying to have our dog boarded up for a week, and paying for the excursions that we will def end up taking on the cruise, i'll have like maybe 100-200 in savings. Also, my job is contract, so I won't get paid for the 6 working days that i'm going to miss. When we get back (late March) our mortgage will also be due in a couple days, which will basically put me at 0 for savings. We also have a home improvement loan that we pay 300 a month for. Now I know my fiance will not be ok with not going on this vacation. My plan was to basically ask for a compromise- We go to New Orleans, but fly back on Sunday instead of departing for the cruise on Sunday. I would only miss 2 days of work this way, and it would lighten up a lot of the expenses, even if we weren't able to get our money back from the cruise (we have insurance, but I think we would need a medical reason to get a refund). I love vacations, I just don't want to screw myself over financially to take one. There are also a ton of concerts and events I want to go to over the summer, and would much rather save up for them than chill on a cruise for 3 days. Am I being dumb for thinking this way?

If you'll have a few hundred in savings, including your emergency fund, you shouldn't be going on vacation. You need to save up a solid emergency fund before going on trips.

I actually think you are being smart, and I would seriously think about pushing the wedding off until your savings has recovered IF there are additional expenses associated with it (there will at least be gratuities). If you are at zero savings you should not be buying extra houses, throwing completely discretionary parties, and taking vacations. That is a time when you go into frugal mode. Save up for a honeymoon later and make that your first vacation after your savings have recovered. I would not even go on the cruise right now.

Human: Swedish student loans have an interest rate of 0.34% which is so incredibly low that to me it doesn't make sense to pay them off in let's say 4-5 years. I'm most likely going to rack up ~70,000$ in debt from going to college in America. Would it be wiser to put the additional money into some sorts of savings account where they will grow?

If I had leftover money after savings and 401k, I'd put it towards the loan just to get it paid off faster. It might be a super low interest but it's still a monthly payment. But I definitely wouldn't make extra payments a priority on it.

You may find these links helpful: - [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hello. I am in desperate need of advice on what to do. I use Bank of America and like the title says- my wife did a online ACH transfer to a chase bank customer. She put 1 digit wrong in the account number (everything else was correct INCLUDING his NAME). Bank of America opened a case for us when our friend did not receive the money- and 7 days later basically told us we can't get the money back because it went into an account. They said that the customer it was sent to is refusing to release the funds so we cannot get them back. Am I protected in any way here by law? What can I do? Please help! Thank you so much Assistant: lmao he doesn't get a choice to keep the fucking funds. Escalate the matter to senior management and if it's still stalling out start bringing a lawyer/law enforcement into the matter. Human: I'm just worried that I won't be able to do anything with the lawyer side of things because if my legal fees exceeded the $1300 I sent then would it even be worth it? I have talked to the branch manager of where I sent the money and they seemed fairly confident they could get the money transferred to the right person. I am not sure how to go higher than that though.

For a matter of $1300 you can sue them in small claims court for about $50 and no lawyer. You would need to research to figure out if the defendant needs to be your bank, or the person you sent the funds to, but I suspect it would actually be the bank. Edit: It looks like you'd need to sue Bank of America for not following the FDIC rules: https://www.fdic.gov/regulations/laws/rules/6500-580.html See "Section 1005.33--Procedures for Resolving Errors" and "9. Account number or recipient institution identifier." which makes this section applicable to your situation. Read that entire section to understand your rights and the time limits that might apply to you. Approach BoA and get all documentation from them TODAY (like a copy of the case they opened -- proves that you contacted them as soon as the error was discovered, that they took 7 days and did not address it appropriately), while escalating the situation until you reach someone who understands FDIC regulations. If that fails, take them to small claims court.

Contact the regulator as described above. You do not need a lawyer.

Human: Hey everyone, long time lurker and this is my first post here. So I scheduled a doctors appointment with a specialist that my brother sees and recommended to me. I am covered under my mother's plan and so is my brother. I was just told that I need to pay a $200 deductible for the visit and the insurance will cover the next visits, I just need to cover the co-pay. The appointment costs $275, so the receptionist just told me I need to pay my $200 deductible and the insurance will cover the rest. This is all just so confusing because my brother has never had to pay more than the co-pay with this doctor and neither has anyone else in my family when going to see a doctor or specialist. My appointment is tomorrow and I really want to sort things out as soon as possible, because I feel they might be making an error with this whole ordeal. Is this correct or should I be complaining to my insurance provider right now?

We don't know anything about your insurance. Call and ask them. Explain why you're confused.

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Human: I need help in what language or keywords to include in the "explanation of changes" portion of the 1040X. Should I mention the line number that changed on the 1040 in that explanation. I contributed money to a health savings account which is tax-deductible. Just trying to get an idea how to write that in a way that the IRS understands without causing any red flags. Thanks for the help!

"Forgot to include contributions to Health Savings Account on original return. See attached 8889." Write what you would say if an IRS auditor asked you in person :) Nothing to stress over.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I'm not sure if this is the right place to ask, but we need some advice. My girlfriend had a gallbladder removal surgery last year and then a follow up surgery. The insurance company has deemed the follow up surgery "not medically necessary" even though she was in a great deal of pain and the doctors were concerned about potential complications (as severe as organ failure). An $11000 medical bill would be devastating. What can we do?

Call insurance company, file an appeal, go from there.

Welcome to /r/personalfinance! Comments will be removed if they are political, medical advice, unhelpful, or uncivil ([subreddit rules](https://www.reddit.com/r/personalfinance/wiki/rules)). Our moderation team encourages respectful discussion. You may find the [Health Insurance wiki page](https://www.reddit.com/r/personalfinance/wiki/health_insurance) helpful. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I was checking my credit report and it says that my oldest credit card is 17 years old even though I am currently 24? I am wondering does this have to do with my parents opening a credit line in my name? They are not the best parents and I honestly would not be surprised if they did such a thing. I do know they had really bad credit (mainly my mom) back then so I don't know if that would explain everything. The credit score simulator says that my credit score would drop if I were to close that account but I don't even see that credit line detailed anywhere, let alone be able to close it. Any ideas how I can find out what credit card this is?

your parents probably put you onto one of their existing cards as an authorised user.

You should be able to find details about the account in your credit score, even just using Credit Karma that info is listed. If it has some old nasty balance, your credit is probably shot. What's your score like? If your score isn't bad and there's not a balance on the account, shoot, I would leave it. That's great for your credit.

Human: I'm a full time student, I graduate in may 2018, I work part time time. What kind of savings and what kind of time line should I expect? In the US what kind of loans are best for building? Any advice in general?

First, from the time you get the title to the land, you will need to pay property taxes of some kind on it. Second, it is usual to get a construction loan to pay for building the house. Third, after the house is built it is usual to convert the (expensive) construction loan to a (cheaper) ordinary mortgage. Ideally you should have savings which will be 25-30% of the cost of building the house before you start. Talk to your local bank or credit union about getting these loans. Talk to a local real estate agent about what the value of a finished house on this land might be. (You don't want to build a house that will never recoup it's expense once built due to location, or the local market, or whatever). Check that the land has utilities connected to it, or, if not, what bringing in electric, cable, phone, water, sewage, etc. might cost. Check what permits and planning permissions might be needed. Talk to a local builder about building costs and timescales. Good luck.

Talk to a builder and a mortgage broker.

Human: New adult here- I just found out I'm getting $4,800 in backed up bonuses that I wasn't receiving. The obvious choice for this would be to invest it, but I'm going to be making a cross-country move in six months, and I'll be needing some or all of this bonus to put towards a security deposit and buy a car when I move. Is it worth investing it for such a small amount of time? Should I just keep it in savings so it's available when I need it?

You're better off keeping it in savings.

Use a high yield savings account such as ally. That way you can make a bit of money before you use it.

Human: So, I'm finally getting to an income level where I can consider increasing my loan payments, or use the money elsewhere. I have $45,000 in student loans at 5.125% interest. I can continue making minimum payments for 10 years, or I can start to increase repayment. If I don't increase student loan repayment, that income is going to go into retirement plans, which normally net 10% (7% ignoring inflation). Paying debt is equivalent to investing, essentially, so I'm looking at a "gain" of 2.125% by paying off loans with extra income, or a gain of 7% by investing that same income (both ignoring expected 3% inflation). Am I thinking this through right? 3.3x better returns by investing versus paying off debt (above min monthly payment)?

Anything 5% or higher is "you should pay it off before investing" territory. Returns on your investments can fluctuate, paying off the loan is GUARANTEED 5%.

You may find these links helpful: - [Student Loans wiki page](http://www.reddit.com/r/personalfinance/wiki/studentloans) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Long story short I am a naive idiot. An individual asked me to cash his check for $720 because he didn't have his account open and it was late at night. The check was written from another account (Party A) to (Party B) supposedly the individual I was talking to. It turns out that this guy wasn't the individual to whom the check was written out. I cashed the Check and gave him the amount. After 4 months I was informed by BOA that the check was listed as fraudulent and the amount was reversed from my account. I am a big naive idiot. What can I do to 1.) get my money back 2.) make sure that he is punished for providing a fraudulent check Through research I was able to able to find out his real name and the city he lives in. What can I do? Thank you. Assistant: Firstly, NEVER EVER EVERRRRRRRRRRR do this. No matter if you know them or not. This is like the biggest trick in the book. 2. You're most likely fucked tbh. I used to work at a bank, this happened all the time and there was literally nothing we could do on the bank end. Human: Hey thanks for replying. Yea I feel like an absolute fool. I have the guy on camera since he came into the atm with me and I've found out his real name. Does that help me at all in filing a report?

It definitely helps you sue him in small claims court if he won't voluntarily repay you the money.

Maybe you can file a police report but honestly I have no idea. Good luck though. At least it wasn't a few thousand, I've seen them pretty big. It's sad that someone can instantly fuck your life just by doing a good deed for them.

Human: I don't know where to begin with this mess. I guess I'll just have to pick a point. - My boyfriend hasn't filed taxes since 2009. He was audited in 2007 and owes $3979.60 from that. Looking at his W-2s from this year his income looks as follows: - X|Job 1|Job 2|Job 3| :--|:--|:--|:--| Wages|37516|49486|5453| Fed Tax|8200|5776|995| Soc Sec Wages|37516|49486|5453| Soc Sec Tax|2326|3068|338| Medicare wages|37516|49486|5453| Medicare tax|544|718|79| 12A|2941||| State wages|37516|49486|5453| State tax|2316|2015|210| - This is what I suspect most of his taxes will look like for the years of 2011-15 as well. I'm sure he's going to be hit with penalties. Last night when I made him call the IRS they told him that his 2010 returns were "sub of return" and that he needed to file those first whenever he got his transcripts in the mail. Despite my best efforts, I have not been able to get his information (or mine for that matter) off of the IRS's website. So, we're having to wait for them to be mailed, 5 to 10 days. I feel like I'm about to have a stroke at any second. My blood pressure is insanely high. I'm stressed out. With making nearly $100k last year you'd think that we'd have plenty of money in our bank account. Nope. I'm so terrified I went this morning and pulled what we had out so that it wouldn't be seized. (Don't they attempt to notify you or warn you?) Regardless, I took out our rent money $1025 and the rest except $300. So in all I took out $2325. I wasn't finished paying bills so I at least wanted to have money to pay the bills. We don't own anything except a 2004 truck. Everything else is being paid on. It's not that I have a problem paying back the IRS, but we at least need some payments. I'm most worried they're about to seize his paychecks or garnish his wages to the point that we will be homeless because we cannot afford our rent, or to the point that I'll lose my car because we can't pay for it (which I need to get to the dr's office). Some of my doctors are an hour or two away, and I don't have a choice as to whether I use them or not because they're specialists. - Yes, I am angry with my boyfriend, but not mad at him. He's not a bad person, he just sucks when it coming to handle things outside of work. Anyway, I have been with him since 2011. I was a FT student up until I graduated last year (Aug 2016). I do have student loans but they're being put on hold at the moment because I can't work. Trust me, I'm dying to, but can't. I have some very, very serious health problems that are keeping me from doing so. My point in saying that is that I'm sure he can claim me for those years...*but*...isn't there always a but? He's legally married. He's not seen or talked to his "wife" since 6 months after they were married. She ran off with some guy in 2001 and he's not seen her since. Yes, he should've filed for divorce, but like I said, he doesn't think about things sometimes. - So, *now* you know what kind of situation we are in. What do we do? Are we going to go to jail? Are we going to lose everything we have? What is going to happen? I'm trying to get these papers, file taxes asap, but even when I do get the papers, one lady told me "We will have to file some of those in the off season." Wth does that mean????? Won't that put us in an even worse position if we wait? We're going to have to pay $2k-5k according to one guy to have them done. If he finds that he owes in 2011-13, for example, but doesn't in 14-16, will that offset what he owes? I suppose I take some responsibility as well for his not filing taxes until now. I should've stayed on his ass about it. But I can't fix the past. Basically I just need to know what to do first and if they're going to take what little we have. Between crying and heart paliptations I swear my already poor body just can't take much more. - Edit:formatting fixed.

disclaimer: I am not an accountant or lawyer and none of what I write is professional advice. however, I have known a few people in similar situations. Here's what I learned from observing them and talking about their experiences: - you are generally in a better position if you approach the IRS, rather than waiting for them to talk to you. - The IRS has a bad reputation, and they do have a lot of power. But they tend to be reasonable and resort to the hard tactics only as a last resort. - You are probably not going to jail. I had a relative with an addiction problem, who was off-and-on homeless. Earned an income but didn't file taxes for 3 or 4 years. He didn't go to jail. He got clean, talked to an accountant who helped him file back taxes and recommended he speak to a tax lawyer. The lawyer helped negotiate with an IRS agent. Relative had to pay back taxes plus penalties. It was a largish amount but the IRS arranged a reasonable payment schedule over a few years. > If he finds that he owes in 2011-13, for example, but doesn't in 14-16, will that offset what he owes? Probably, from my understanding. By comparison if you still owe the IRS $4000 for 2015's taxes and are scheduled to get a $4000 refund for 2016, they'll just confiscate the 2016 refund and call it even. But talk to a pro. This problem is not going away. The sooner you can address it the better. A visit to an accountant is probably best. A real, full-time CPA not a part time tax preparer at H&R block. It'll cost a few hundred bucks maybe, but they could walk you through the process, explain things and give you suggestions for dealing with this mess. And the fact that a $100k income has vanished is another issue to deal with. You're not working, so that must be his income ... where's all that money going? You two desperately need a budget and a plan. This tax problem is probably a symptom of a deeper set of bad habits.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: My friend is receiving a large Lump Sum and she wants to use most of it to start a housing project for women who have been the victims of domestic distress. Would it be possible for her to work out a subsidized housing project with her funds? What would be the appropriate government department to reach out to? Additional info: She already does this on a small scale but is looking to expand to shelter more women. The capital investment is not a problem due to her net worth. The organization now also has a couple of volunteers who help the women with counseling and finding a job. Edit: additional info

Probably better off if she finds a local npo that already does this and volunteers for them. Shell learn from and chances are she can do more good in an existing npo than spending calories trying to get a whole new one off the ground.

With no experience in the field, it's not feasible that she'd be able to figure this out and do it as well as the experts. There are plenty of charities nationally that do just this, she'd be better off donating to one of them or going to work for one.

Human: Hi all, using a throwaway but have been following PF for a long time. I recently cut all ties with my parents, long story short was they had access to my bank accounts and drained completely. I didn't have much but all of my savings are gone. as soon as I found out I changed all accounts and moved out. Now I am living on my college campus (100% paid by me and my student loans) and just (yesterday!!!) accepted my first job. My problem was that I have just recently maxed out my one credit card ($1,000 limit) and literally can not afford anything. I can't even take out a loan because I am not fully hired yet and have no assets. I cant even buy a new toothbrush from the dollarstore let alone food. After about 3 weeks of finding college events that give free food I feel I have run out of options. Has anyone else ever been in this situation? How did you get out? I'll be honest, I'm very scared right now and I have no one to turn to. I am looking forward to maybe getting a tax return (I'm 20) but that's the only money I am expecting any time soon. What would you do in this situation? Assistant: In addition to the (very good) suggestions to seek out a local food bank, you should also be aware that you may be eligible for **emergency** supplemental nutrition assistance (SNAP) (aka food stamp) benefits. If your shelter and food expenses exceed your income, you will likely qualify. A caveat to be aware of is that as a college student (in most, if not all states) you have to work a minimum of 20 hours per week to be eligible for SNAP assistance. However, since you were just hired, there is a wage verification form they should be able to use (your employer completes it) rather than having you submit pay stubs. Even if you won't be eligible for long, you need food now. *Please* ask for the help that's available to you; that's why it's there. Human: I've looked into this (Canadian) and it seems like I am not eligible for any sort of government assistance due to the fact that my parents are still claiming me as a dependent (I will be working to resolve this.) Thank for your response!

May be helpful to include that you are Canadian in your original post so responses can be written accordingly.

Hey OP, definitely check out various religious organisations. Also, *food banks*. I know no one likes to admit they need one but there's usually several in Canadian cities (I'm in Ottawa and there's a couple) who can probably help you on the spot if you show up.

Human: I just did this with Capital One. It took five minutes via their online chat system and they are cutting the rate to about half of what it was for 8 months while I pay it down. It's worth the five minutes to save yourself some money! Edit: I'll provide the numbers for those who wanted them. Just under $10k balance, rate went from 16.04% to about 8%.

*If you have credit card debt. If you don't have credit card debt, contact them about raising your credit limit. This will reduce your utilization percentage and increase your credit score.

Or even better...set recurring automatic payments to pay off statement balances...and you pay 0 interest...

Human: This past year we fell into a new tax bracket & will be owing roughly $15k this year. I'm asking for any tips for tax shelters & also ways to make additional income such as investing in real estate, creating an LLC, etc. Anyone have a success story to share that has made their money WORK for THEM (instead of the other way around)?

You don't exactly fall into a new tax bracket. That is common misnomer. Only income earned in the higher tax bracket is taxed at the higher rate. You can put up to 18k into a 401k tax free. That is one way to lower your tax liability.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I have an HR conversation on Tuesday and want to come prepared with a number. Here's my thinking: * Cost of living seems 15-25% higher (exchange rate is currently 1.25 and goods are generally priced about the same - coffee is $2 here and £2 in UK, so 25% higher relative cost). * Taxes are also much higher - in my US tax bracket, each additional dollar is taxed at 28%. In the UK, each additional dollar would be taxed at 40%. * Rent is the worst of all. My 2-bedroom with a 15m commute is $1350. In London, something similar runs for £2500 ($3125) and has a 45m+ commute. * Lastly and selfishly, my company is asking me to fill a needed position in another country. That should warrant some increase based on demand and merit, right? **I make $90k right now. Is asking for £110-115k ($135-145k, or 50-60% increase) unreasonable?** It feels like a huge ask to achieve the same standard of living, but the math seems right. Please help! [Employment]

When I moved from NYC to London my salary went from 160k to 225k. So I think you are in the right ballpark.

Ask for all of the above, and also make sure to get paid in American dollars. Who knows what Brexit is going to do to the pound?

Human: I'll try to sum this up as quickly as I can. My mom needs a liver transplant and the hospital that wants to perform the operation is a 30-45 minute drive away from her current home. She and her husband would like to buy a home that is not only much closer to the hospital, but one that is also less troublesome for her failing health (it has stairs, must have water brought in, etc). Problem is, they are currently unable to get a loan due to their terrible history with finances (some of which has been back luck, but mostly poor decisions over the years). To the best of my knowledge, she has claimed Chapter 13 bankruptcy three times, and of the seven homes she's purchased and sold over the last few decades, four of them were at a loss. So yesterday she asked if I would be willing to co-sign on a loan so they can purchase this new house. Of course I feel terrible for her and I want to help (I may be supplying part of liver apparently? Yikes), but knowing her financial history in addition to her very poor history of mental/physical health doesn't instill me with much confidence that this will end well. In fact, I'm convinced this will end badly for both of us. Should I bite the bullet and help her, knowing full well that I'm going to be responsible for an additional mortgage at some point in my life? I make about 40k a year after taxes, and currently have my own mortgage. I would not be able to afford both if/when I end up responsible for hers. Here are some of my thoughts since I was asked and haven't had much time to process/research: * It seems like it would be better for her to find a place to rent while she sells her existing home and prepares for the operation (apparently she needs several months to improve her health before she can even have surgery anyway). I'm not sure if that's a good idea, and I'm not sure how I'd convince her even if it was. * Is it possible to temporarily (or even permanently) reduce my credit score so I'd no longer be in a position to co-sign? I realize that sounds kind of shitty, but the prospect of claiming bankruptcy myself or having to evict my own mother from her home so I can sell it doesn't sound very good either. If anyone has any other options I could explore, I'm all ears. Thank you!

nope Nope NOPE **NOPE** **NOPE!**

Don't even think about it.

Human: Hi PF, Pretty basic question. Currently, my spouse and I do all of our day to day banking with a (largish) local credit union. We have around 30k floating between checking and savings. We have a big portion (10k) of our emergency fund at discover earning .95% interest. Overall, we have been reducing what we're holding in checking/savings and moving it to investments in vanguard and e fund @discover, but its likely we'll end up keeping around 15 to 20 in whatever our 'day to day' checking/savings ends up being. I noticed that chase is doing a promotion for $500 bucks to, essentially, switch to them for our day to day banking. We were already thinking of moving away from our CU in order to get a better online experience, but what is this all about? Seems like a pretty easy to get $500 bucks. Should we switch? Whats the catch? Update: We went ahead and opened the accounts. I'll make another post if I find things to be scammy.

I just want to point out that you don't have to officially switch. You can use multiple banks. All you have to do is meet Chase's minimum requirements to earn this bonus. It's usually to keep $10k or so for a period of at least 6 months to earn the bonus. You also have to have direct deposit, which you can often fake by transferring money in from other accounts. Check the Doctor of Credit site that someone else posted for more information about this. So you can keep using your current bank/CU while just keeping money on the side at chase.

I did it, and I didn't close my other account because I only opened it for the bonus. When you open a checking and savings account, you get $300 within 10 days after your first direct deposit is posted to the checking account, but for the $200 bonus, you need to deposit and maintain 15k, and the $200 will be deposited after 90 days. After 90 days you can transfer the money to your other bank account, but you need to wait 6 months before you close both accounts. Also, as long as you have a direct deposit of at least $500, you don't need a minimum in the checking account, but there are more ways to prevent paying the fee.

Human: Can't seem to find answer elsewhere on the internet

Cause you don't have to pay taxes on your gains

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: So today Snap went public and did quite well valued at around 30 billion dollars. My question is how this affects the index funds we all know and love. Would Snap already be a part of the SP500, and all other indexes like VTI or is there a certain waiting period?

S&P 500 has [more criteria](http://www.investopedia.com/articles/investing/090414/sp-500-index-you-need-know.asp) than "largest 500". It's sort of an active index, as the S&P committee can still kick a company out for failing some criteria.

You may find these links helpful: - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) - [Investing wiki page](http://www.reddit.com/r/personalfinance/wiki/investing) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I've read in various comments over the years in PF that my bonuses aren't taxed any different than a standard paycheck, but it just feels like it doesn't add up. I claim 0 on my w4 and usually lose around 20% of my check to federal/state. Yet when I get a holiday bonus of 1k, I'll see a hold of nearly 50+% .... I've looked through the tax sidebars and couldn't find anything. Can someone break it down in laymen's terms how I'm not being taxed any differently? Thanks in advance.

The tax withholdings from your paychecks and bonuses are *estimates* of how much tax you will owe. Your employer doesn't know enough about your personal tax situation (credits and deductions you will claim, whether you will get married this year, etc.) to be able to get it exactly right. Bonuses often have different amounts of taxes withheld than regular paychecks, as there are different withholding rules for bonuses. This doesn't ever affect the tax that you actually owe on the bonus. When you file your taxes every year, what you are doing is computing the amount of tax that you actually owe and then comparing it to the total amount of tax that was withheld from your paychecks and bonuses. If too much was withheld, the government sends you the difference (i.e. a refund). If too little was withheld, you send the government the difference. In short, it all evens out the next time you file your taxes. Any money temporarily "lost" due to over-withholding on the bonus is added to your next tax refund (or subtracted from your next tax payment).

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: So I got a call Tuesday morning I couldn't answer it because I was working and they left a very serious voicemail saying that if I ignore the call it "would be considered a criminal offense" So I answer them and the lady said that there was a arrest warrant on my head and that I needed to pay $2,875 at the time o only had about $500+ in my bank account and they wanted the money in iTunes gift cards (I'm an idiot I know) so I ended up buying the cards and giving them the codes they wanted me to go to the bank and ask for a loan so I took some money from my college loans and spent $600 so now I'm wondering if there's a way I can undo this and somehow get my money back from these scumbags.

Also, for future reference: *The IRS never calls like this.*

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I was an employee of a subcontracting firm deployed to Afghanistan from Dec 2015- Dec 2016. Originally i was a w-2 however my employer never filed my w-2. Now, after threatening to report him to the IRS for tax fraud, he has told me he didn't know how to file for my state so he is just putting me through as a 1099 and returning my withheld taxes. i have a couple issues with this. 1. As an employer doesn't he have a 7.2% tax burden. 2. If so, because i was outside of the US for over 330 days and am exempt from taxes, and he only returned my share doesnt he technically owe me that 7.2 % 3. He also emailed me around my 6 month mark offering to bump my pay 10k for switching to a 1099 because his additional tax burden. Since he involuntarily switched me shouldn't I receive the pay bump? Assistant: He is not your employer if you are a 1099 worker. The way you describe yourself as an employee shows that you should be getting a W-2. Human: When i was hired he gave me the option of being a w-2 employee or a 1099 independent contractor. I chose w-2 because I wasn't going to make the foreign earned income exclusion, however things changed and I did. He gave me a 1099 because he said he didn't know how to file a state section of a w-2 which i'm pretty sure is illegal to do.

You don't get to pick whether your a 1099 or a W2 employee. What your "boss" requires you to do, when to do it, how to do it is what determines if your a w2 or 1099

I worked in a consulting gig where this was also normal. Pay was higher if you elected to be a contract 1099 employee but the contracts were not guaranteed. Else W-2 and benefits. This is a rather large consulting firm (top 5 accounting) and I don't believe they were breaking any rules. Just a different perspective to all those saying "you don't get to decide".

Human: Exactly what the title says. I was supposed to get a raise so the bump in pay didn't seem suspect to me. I found out last month that between aug-Nov I was overpaid. They requested a refund which I paid. Last week they said 'oh wait we actually meant you owe DOUBLE the amount we said....please pay up now. Here's the thing, I don't have the money, because it was taken out for taxes. When i pointed this out, they said I needed to pay the $ now and they would supply a "explanation letter" so I can be reimbursed by the IRS in 2018. This seems really unfair to me...I'm a poor student and it was there error that caused this whole mess. What can I do? Does this seem right?

I had a similar problem when work forgot to deduct for health insurance. I owed like a couple thousand. It was hard to notice because a bunch of other stuff was being deducted and I was younger, less shrewd. They were like, "Pay it now" and I was like "I live paycheck to paycheck, and I am supposed to be allowed to pay that money pre tax, so absolutely not" and they were like "OK we'll deduct 50% of your paycheck until it's paid" and I was like "I'm reasonably certain I don't have to agree to that, let me go ask the Dept of Labor" and they were like, "Oh fuck don't do that. 10%? 5%? You still owe us this money" and I was like, "OK 10%." Hope it gets resolved for you OP

Yah, considering taxes were involved, I'd opt for some of the advice mentioned here regarding delay your raise as to pay off that loan etc, and probably consider a new place of work. My actions would vary more depending on the type of work and amount of money involved tbh. Legally, you should be in the clear, they cut the paycheck, but I'm no lawyer.

Human: I just sold half of my stake in a stock that reached 100%. This took the principal off the table so that the only thing left is profit. But since then, the stock continues to go up, and I get this nagging feeling (mostly from my wife), that if I had only held on longer I would have locked in more gains. Can successful people turn off this "would have, should have" part of their brain? I made a sizable profit...shouldn't that be enough to feel satisfied in the investment? Any tips would be welcome.

Buy "The Intelligent Investor" Any time the market makes you feel fearful or greedy, don't take any action. If your wife is playing captain hindsight and nagging you about money you could have made, don't go out of your way to discuss your investments with her. She will amplify your fear/greed emotions and the problem will get worse.

I like using a trailing stop loss to prevent big drops.

Human: My wife and I pay about $9500 a year for child care for our twin sons. They go to an in home certified daycare, and we are very happy with the provider. She loves our boys, they love her and the other kids. Thing is, she told us when we first started using her we could not write her off on our taxes. She said "it's a lot of extra paperwork on my end and it really doesn't save you that much money at tax time." We can only pay in cash, so the FSA through my wife's employer is useless to us as well for childcare. Again, she is registered and inspected by the state, so it's not exactly under the table, but the way in which we pay sure feels like it is. What we pay is comparable with what other providers charge, so I don't feel like she is passing along the savings so to speak. My wife and I net about $85k a year, so I feel like us being able to deduct $9500 wouldn't be insignificant. How much work could it possibly be on her end, or is this a line? We've already filed this year, and I don't think it would be in our children's best interest to go somewhere else. But I can't help but be curious...

She's following the law as far as state licensing goes, but she's not complying with federal tax law. If she "doesn't want to do the extra paperwork" she means she doesn't want to pay tax on that income.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: So it was a standard phishing thing and a now ex employee in HR sent out every employees W4 which includes SS# and wage information. They are providing three years of Experian protectmyid monitoring. So obviously we are going to use the free product but was wondering if any extra steps or lessons people may of learned of how to deal with this by personal experience.

File your taxes quickly to avoid a scammer doing it for you and taking/faking your refund.

This is a tech question, since it was on the companies end I don't see what you can do (unless you want to sue).

Human: I've been thinking that with identity theft, it might be easier to lock down my kids credit for the next decade or so, instead of checking their credit reports. Has anyone done this, and is it a smart move? They are both under the age of 5.

I cross post on this subforum and RBN. With the number of entitled assholes raising kids, it no longer surprises me that parents do that to their kids. Saddens me? Pisses me off? Yup. But surprises me? Nope.

Things may have changed since then, but my parents opened up a family card putting my sister and myself under the account when we were infants. When I did a credit score look up when I was about 18 or 19, I had a score of 750+ and ~18 years of perfect credit history. So if you want to help your kids out, I'd say opening an account under their name and giving them 15 years of perfect credit history would be a good way to do that.

Human: She opened it in name after a pre-approved letter came in the mail and has just told me now. I had wondered why my credit score was going to crap, but I just thought was it because I had high credit utilization. She apparently had already contacted the catalog and now has told me after, that they said they wouldn't rescind the report to credit bureaus. Am I on hook for this late payment? My identity was basically stolen. The catalog in question is Fingerhut, if anyone wants to know. EDIT: She has now paid it off entirely but hadn't ever paid it since November.

this is identity theft and should be treated as such

Do any of you know how bad a first time late payment hurts your credit, like I said I have high utilization, like 100% in some cases but I'm not sure how much getting it off would have made it better.

Human: Hi all, this is my first post in Personal Finance, a sub-reddit I've recently discovered! A little background about me/my finances may be helpful for offering advice. I'm a 27 year old whose FICO score hovers around 783-811 from month-to-month. I pay my credit cards in full every billing cycle and have never missed/been late on a payment. I have little debt (just my mortgage and auto lease, nothing else). All of my monthly bills (credit cards, auto payment, mortgage) have always been paid in full and on time. Ideally, I'd like to have my FICO score consistently remain above 800. I'm a person who likes to milk his card rewards for all they're worth. As a result, I use my cards for everything, knowing they will be paid off in full and on time each billing cycle. This causes my debt-to-credit ratio to fluctuate. It's high (sometimes 30%) near the end of the cycle, then low once I make my payment. Perhaps I should consider making several payments throughout the course of the credit cycle to ensure a consistently low debt-to-credit ratio? I called the bank that issued me the card I primarily use to ask about a credit limit increase as a way of keeping my ratio down, but I decided against it when informed it would require a hard credit pull. Bank of America reports my FICO score to me, and one of the knocks against me is "too many accounts with balances." This throws me off. I have a few accounts on my credit report that have been paid in full (previous auto loans). The only accounts I have with balances are my mortgage, auto lease, and credit cards. Perhaps this is still too much? I also wonder if past decisions to buy cars outright and forego financing hurt me in this area, too. Okay, so I think that covers most relevant information? Can anyone offer me some tips/advice to keep that FICO score consistently above 800?

>Ideally, I'd like to have my FICO score consistently remain above 800. I'm a person who likes to milk his card rewards for all they're worth. These two goals are at odds with each other. Personally, I opt for the credit card rewards. My score usually hovers i in the 770-780 range. But I've had no problem getting the lowest available mortgage rates while (lightly) churning credit cards.

I pay my two credit cards off about two twice a month.

Human: Just like the title says how many roth ira's can I have? I think as many as I want but I can't put in more then $5500 a year. Is that right or can I have 5 and contribute $5500 to each. Thanks in advance.

>Just like the title says how many roth ira's can I have? I think as many as I want but I can't put in more then $5500 a year. You can have as many as you want, one with Betterment, one with Fidelity, one with Vanguard, etc. The $5,500 yearly limit is shared between them though, so if you contribute $5,500 to one you cannot contribute to any others. Because of this it doesn't really make sense to have more than one. Roll any old ones into the new one should you find a better provider and move.

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hello guys – just was transferred to a new 401-K program. Currently, my entire exposure sits in BLACKROCK LIFEPATH IND 2055 INST (LIVIX) [0.38%]. If I had the option to throw everything in a Vandy Target Date fund, I would have done so to lower expenses (seems like Blackrock follows a different asset allocation strategy than vanguard as well, just not very familiar with it. More familiar with my vanguard retirement fund allocation through my roth ira). I do, however, have access to several Vanguard Admiral Share offerings with this 401k program. Using the following funds, could I potentially mirror a Vanguard Retirement Date 2055 fund? Or is the hassle not worth it (either too hard to mirror the target date fund or no meaningful ER savings?) Just looking for any advice regarding potential allocation. Thanks! Available Vanguard Funds: * VANGUARD CORE BOND ADMIRAL (VCOBX) [0.15%] * VANGUARD DEVELOPED MARKETS ADM (VTMGX) [0.09%] * VANGUARD FTSE ALL-WORLD EX-US (VFWAX) [0.11%] * VANGUARD US GROWTH ADM (VWUAX) [0.32%] * VANGUARD VALUE INDEX ADMIRAL (VVIAX) [0.08%] * VANGUARD MID CAP INDEX ADM (VIMAX) [0.08%] * VANGUARD SMALL CAP INDEX ADM (VSMAX) [0.08%] * VANGUARD 500 INDEX ADMIRAL (VFIAX) [0.05%]

2% VANGUARD MID CAP INDEX ADM (VIMAX) [0.08%] 8% VANGUARD SMALL CAP INDEX ADM (VSMAX) [0.08%] 45% VANGUARD 500 INDEX ADMIRAL (VFIAX) [0.05%] 35% VANGUARD FTSE ALL-WORLD EX-US (VFWAX) [0.11%] 10% VANGUARD CORE BOND ADMIRAL (VCOBX) [0.15%] You could also simplify the total US Market slightly and just go 45% 500 Index and 10% small cap, you miss the mid caps but it isn't going to throw you off too much. Total US market approximations derived from here: https://www.bogleheads.org/wiki/Approximating_total_stock_market The only way this differs from the VG target dates is that it doesn't have an international bond allocation, which is normally 2% of the Target Date. There is also a slight difference between the ratios. I believe the VG Target funds have a 37% international allocation, so you could change that and claw a little more from the US piece.

You may find these links helpful: - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I owe $29K in college loans, but have almost $13K in my checkings account. I work on a temporary contract for an F100 company that expires in September, and I expect to be extended. I live at home - between loans, car payments, and my phone bill - my expenses are below $600 a month. My car is an 08 Honda Accord which should last me at least another few years as it has barely over 100K miles Where do I invest, what are worthwhile purchases, how much should I be putting towards loans? Right now, I barely spend any money. I'm interested as to what others would do if in my position. Thank you in advance Edit#1: Thank you everyone! I'm looking into refinancing my loans...I am also considering putting my entire tax return towards the cause of paying them off. Should be about $3,000 I get back, maybe more. I only began working September 26, and am fortunate enough to have saved this much in that small amount of time! Purchasing a home is a HUGE goal in my life. I am aiming towards that and looking to leverage my spending / saving to reach that goal. Additionally, I have been meeting with financial advisors on setting up a retirement account. I like a Roth IRA through American Investments, but they have a $10K minimum deposit limit, so that might get pushed back a bit.

Are you crazy?? Pay off your debt.

[How to Make Money Buy Happiness](http://www.mrmoneymustache.com/2014/04/14/how-to-make-money-buy-happiness/)

Human: Here's the rundown: this year was the first time I've had to file taxes. In 2016, I got my first job and started college, and I didn't live with my mom at all. I lived with my sister, and my mom paid my rent until June (I was still in high school). After June, I had to start paying my own rent. I went to file my taxes and I claimed myself so I could claim my school tuition; this would give me about a $2,300 tax refund, something I could definitely use. I submitted my taxes, and they were rejected 2 minutes later because there was a dispute. Turns out my mom claimed me. Since she claimed me, I couldn't claim myself, and since I couldn't claim myself, I couldn't claim my school tuition. Now I owe the government $80. She's already gotten her refund, what do I do? Edit: The reason I wasn't living with my mom is because she took a job offer in another state. I didn't choose to leave home.

If you don't believe your mom had a right to claim you (you believe you were neither a qualifying child nor a qualifying relative) then submit your return on paper. The IRS will reach out to both of you to settle the dispute, and you'll provide them with what proof you have that you were allowed to claim yourself (probably proof that you provided over half of your own support).

Who pays your tuition? If your mom pays it that counts toward "support".

Human: So I just stumbled upon an article titled "Will My Credit Score Go Up When I Pay Off My Debt?" that brought up some questions for me that I hadn't considered before. I was under the assumption that just paying off all my debt completely would show I am a reliable debtor. I was really hoping that paying off all my debt would increase my credit score so this is seeming like a major bummer to me. If anyone with more knowledge on this topic could help figure out how to pay off my debt while having the best possible impact on my credit score I would be greatly appreciative!! Thank you all in advance. -- TL;DR EDIT/CONCLUSION: The main point is that if you want to have the best effect on your credit when paying off debt, don't completely wipe it out to 0% utilization. Leave it at around 1% utilization and you will have the optimal effect on your score.

Put your financial house in order and use credit wisely and your credit score will come up.

You may find these links helpful: - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) - [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections) - [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I use turbo tax and they want to charge $75 for my state and federal (I had a misc 1099, for an amount a little over $1200). How can I write this off?

You can't unless: 1) You itemize *and* 2) Your "misc expenses" are over 2% of AGI

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: My lease renewal is coming up and my apartment complex has offered me a 5% increase, which in all honesty is not that bad comparatively to the horror stories I hear from corporate complexes... however - nothing is included in my rent. No water, sewer, or trash. So that in addition to the rent is an extra $80 each month. I was talking to a realtor friend who said I'm better off finding a private owner. I agree after seeing MLS listings in my area. Here is where the real questions come in: I am barely skating by with my budget, and I have two near maxed credit cards, a car loan, a personal loan (from the last time I had to move), and a sick old dog. I am thinking about taking a loan out against my 401k to fund my move that way I am at least owing money to myself and not to another lender. That said, do you think that is wise or should I stay where I am and throw that 401k loan towards one of my near maxed credit cards? Take-home income per month: ~$2500 Rent (with increase plus water/sewer/trash): $1255 Loan/debt payments (minimum payments): $450 Necessities (Electricity, Car&CarIns): $625 That only leaves $170 for food and gas... and it scares the living shit out of me. So should I take the 401k loan out (would only take out $3000 as it's 50% of what I have vested) - use it for moving costs to find something cheaper - or use it to drill down the debt and make the monthly payments less? My realtor broker friend said I most definitely should be able to find a place in the $1100 range or maybe even less - or stay the same with that $1250ish figure but be in a much better neighborhood with amenities. I live in the Palm Beach County area - so cost of living is really high, if that helps much at all. My company doesn't pay well... last year I received a 1.7% increase. This year - I'm not expecting much more. And more backstory: this is my first time having to deal with all of this... and that debt I have? Left with me after a failed engagement. I feel so down and depressed and stressed about this, I have no idea what to do and ..well.. I figured I'd ask here. Sorry if I didn't give enough information - sorry if I was just venting the answer is blatantly obvious... Ugh. I don't know. Thanks for reading though.

You're barely skating by at this point because your situation is completely untenable. You're paying more than half your monthly take-home on rent (normal guidance is 30%-40%) which is the worst part, and your debt load is pretty insane considering your income. You can't afford to live on your own, and thinking that you can is deeply flawed. You need roommates, and that's the best place to reduce your monthly expenses. Sure, roommates can be shitty, but the way you're behaving financially will have you in a big hole in no-time. I'm sorry that you feel down about all this, but if you do the hard work required you'll be in a better spot (both financially and emotionally).

Ugh, I don't know where the post title went...

Human: I'm working on a budget on Mint and it is suggesting I get a cash back card. I already know I make more than I spend, I have no loans, and the extent of my credit score is my capital one card which I have paid in full every month. I feel like I'm throwing away money by not having a cash back card, is this the case?

Yes, get a reward card and use it responsibly, paying it off each month. Look at your spending habits to see what card makes the most sense. For example, if you are a frequent Amazon prime user get the Amazon card that gives 5% back.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: To keep things concise, I had 3 active, open credit cards in great standings all with low limits. I have *always* paid off the cards "debt" in full, every month. Literally always. My credit score was 797. 2 of the cards have rewards that I benefit from, and the 3rd has none. This was the first card I was eligible for, low limit (3k), no rewards; just a start up card. After several years, I found myself using this card about once a month, just to keep it active, and ultimately realized I simply don't spend enough money to justify 3 cards. So, I decided to cancel it (with no outstanding debts). Low and behold my credit score went down 30 points, to 767 once I did this. Should I have asked to increase my limit on one of my remaining cards? Why did it drop by *this* much? Is this amount typical? (The interweb says ~10 points is average) What actually happened and why?

1. Don't obsess over your already very good credit score. You've dropped 30 points from a very good credit score to a very good credit score. 2. You have reduced your credit limit/lines of credit and increased your utilization. That impacts your credit score.

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Reports](http://www.reddit.com/r/personalfinance/wiki/credit_reports) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hi, I just retired and am looking for ideas to increase my monthly income and better utilize my money. I am not taking any Social Security because ill take that once I'm 65 What can be some safe ideas to invest (I'm a bit wary of financial advisors) so that I can cover my monthly ? Are those retirement funds worth it ? Here are my basic stats for my wife and I:- * Pension - $2500/mth (after medical insurance) * Stocks - $85000 * Cash - $800k (at 1% in online banks) * Bank acct - $115k (pretty much 0%, but needed to keep above a certain limit) * No home mortgage, cars paid off, no debt of any sort. **Expenses ($3500 per month)** * Utilities (Water + Electricity + Cable) : $600 * Insurance (Home + car) : $300 * Grocery + Fuel : $1200 * Taxes (Home + HOA) : $900 * Misc : $500

> * Cash - $800k (at 1% in online banks) Holy shit that's a lot of money to have sitting in cash, losing money to inflation > * Grocery + Fuel : $1200 Holy shit that's a lot of money for groceries and fuel in a given month > * Utilities (Water + Electricity + Cable) : $600 Holy shit, that's a lot of money for utilities in a given month

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hi reddit, Thank you for reading. If a family member were to give me a dollar amount greater than the $14,000 per year annual tax gift tax exemption, would either of us be required to pay taxes on it? I read from Turbo Tax that the amount going over would go towards your lifetime tax exempt gift amount (https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax/INF12036.html). Does that mean, that neither of us would be responsible for taxes?

The person giving you the gift has to fill out an extra form while doing their taxes. As long as the total gifts they give is less than $5.4 million over their lifetime, they pay no taxes on the gifts. You pay no taxes on it and fill out no form.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Most vets are pretty bad at personal finance (we apparently think an average student loan debt of $170K and a starting salary of 60K is a good idea..) but as I lurk here quite a bit I've seen a few posts with questions about veterinary bills, insurance, etc so I thought I'd share some of my thoughts from behind the scenes. First off, yes, veterinary bills are expensive. Do bear in mind that vets are actually expected to provide modern medicine at a fraction of the cost of human medicine, even when the procedures are the same or similar. That being said, part of the reason that veterinary bills aren't more marked up is that the vast majority of the time, payment is expected at time of service. Routinely you will be asked to leave a deposit of 50% of the estimate if you are hospitalizing your pet, and then pay the rest when h/she is discharged. I hear this advice tossed around here a lot, "Ask for a **payment plan**. Most vets do payment plans". I have worked at practices in four states and I have never seen a vet clinic that routinely offered payment plans. The truth is that many vet clinics are small businesses that are not set up to offer payment plans. If they didn't get paid, they couldn't keep their doors open. They would need whole separate staff to administer payment plans, plus eat the cost of clients who bailed on their payments. This would likely drive up costs for the rest of the clients. Other clinics belong to a few nationwide corporations, and they've probably even stricter about not offering plans as a part of corporate policy. The few times I've seen payment plans were exceptions for trusted long-term clients, or a few cases that slipped through the cracks and we didn't have any other option. There are **wellness plans**, which are a completely different animal and do not address medical care for sick pets. The exception is that the vast majority of clinics do accept **CareCredit** and highly encourage you to apply for it in case of emergency. You do need to have decent credit to qualify. If you don't qualify on your own, consider co-applying with a parent or family member. Make sure to pay your Carecredit bill in full before the promotional interest-free term is up, (there is no penalty for early payment), or you will be charged interest backdated to the beginning of the loan, which is awful. What about **pet insurance**? There are a lot of pet insurance companies out there, some with good plans, others not so good. I would say that if you have between $3000-5000 in an emergency fund specifically for your pet, then you most likely do not need insurance. Some of my clients have "lucked out" in the sense that they got insurance for their dog when he/she was a healthy puppy, and then developed some sort of chronic condition that needs multiple tests, follow-up tests, medication, etc, and they submit all of those claims to insurance. I have heard good things about Trupanion, which generally pays out 70-90%. I've heard that Pet's Best provides excellent coverage - 100% after a deductible, but has expensive premiums. In general, though, you will most likely pay more for insurance than you will get out of it. I prefer the $3-5000K emergency fund - that should cover most serious illnesses, emergencies, and surgery (you may need to adjust this upwards if you are in an expensive COL city). Anything above that and you are probably in referral/specialty territory and may need to explore other options. So what are your other **options**? If you are looking at an expensive vet bill that you can't afford to incur, you should always ask your vet if there are other options. We are very used to getting this question. There are a few exemptions where there really only is one treatment, and it is a matter of life and death. Generally speaking though, if a client tells us they have financial concerns/constraints, we will try to put together an alternative plan, either one that foregoes some of the diagnostic tests and relies on empirical treatments, or a less intensive treatment plan that still has a reasonable chance of success (outpatient treatment vs hospitalization, for example). If you are at an emergency/specialty center, you will most likely be able to get a less expensive option at a general practice / regular vet if it is appropriate and can wait. If your vet won't give you another option, feel free to seek a second opinion. One of my vet school interview questions actually asked me what I would do with a patient who has been hit by a car and has a broken leg, if the owner doesn't have money. This is for illustration purposes, but can be adapted to other situations. What I would say is: 1) ideally, getting the leg fixed by a surgeon 2) if that's not an option, amputation of the leg is much less expensive and can be performed by most general practitioners 3) if that's not an option, consider surrendering your pet. Some humane societies/animal shelters, depending on their resources, will take in pets with injuries or conditions that can be treated if they will still be adoptable pets with a good quality of life. Everywhere I have worked, almost all the doctors and nurses have at least one pet that they got in a situation like this. Sometimes they have connections with rescue groups as well. 4) humane euthanasia. I love pets. I think they're family. But do I think that only people with $3-5K to drop on their dog should be allowed to have pets? No. Shit happens. There are lots of dogs and cats that live their whole lives without anything major happening; I only have to see them for routine vaccines. But if something terrible does happen, sometimes euthanasia is the best or our only option. We can take comfort in the fact that we gave a pet a good, loving home, and prevented them from needless suffering and neglect. So on from that depressing topic. What are some things you can do at home to make sure your pet is the healthiest and avoids many preventable vet bills? **Preventative health care** 1) Keep your pet at a healthy body weight. If you think your pet might be fat, they probably are. More helpfully, here is a body condition chart for cats: https://www.wsava.org/sites/default/files/Body%20condition%20score%20chart%20cats.pdf and dogs: https://www.wsava.org/sites/default/files/Body%20condition%20score%20chart%20dogs.pdf Keeping them lean is about 99.9% diet.. I've heard so many times this winter, "Oh well he's fat because of the weather, we aren't walking as much". Then reduce his meal portions accordingly! This actually costs *less* money. Can't say the same for any other medical treatment/advice. It doesn't matter how much exercise your dog gets if there's a never ending bowl of food available for him. I recommend feeding two portioned meals a day. Preventing obesity reduces the risk of musculoskeletal injury, arthritis, diabetes, cancer, urinary tract problems etc. 2) Brush your dog's teeth! Especially if they are a smaller breed, or one of the poster children for bad teeth: dachshunds, chihuahuas, yorkies.. Bigger dogs seem to get away with less dental care, whether it's because their teeth fit better in their jaws, genetics or that they usually enjoy chewing on things that mechanically cleans their teeth. Either way, I recommend at least regularly examining your dogs teeth, especially the ones in the back. Daily (or at the very least every other day) toothbrushing is the most effective way to prevent plaque and tartar buildup, and save thousands in dental bills over the course of your dog's life. Edit: yes, you should also brush your cat's teeth, if possible. Probably best to start when they're young! If you don't have a pet yet, seriously consider rescuing rather than buying. Purebred dogs are incredibly overpriced and a lot of them tend to have health problems that mixed breeds don't. Purebred dogs from puppy mills/pet stores are the worst: birth defects from inbreeding, parasites, infections, etc.. If you have your heart set on a puppy, shelters regularly have puppies up for adoption, and will have already been fixed, which saves you a $300-500 surgery, and had a bunch of vaccines. If you have your heart set on a purebred, do research what their common health problems are and make sure you are equipped to deal with them. Second edit: another money saver: it's always fine to ask for a written prescription for your pet's medications, or ask to have it called in to a human pharmacy if sold there. you can check certain websites to see what the prices of the medication would be. If the med isn't listed, it's probably a veterinary-only drug that must be sold through the vet. As far as online pharmacies, I have mixed feelings about them. They are not necessarily subject to the same regulations as brick and mortar pharmacies. Their products may not be covered by the manufacturer's guarantee. Some of the products we've seen on there -- their manufacturers actually only sell direct to veterinarians, so those products are either stolen or counterfeit. I have no problem with saving clients money by writing prescriptions to be filled elsewhere, but I am a little leery of the online ones.

Great post and a nice change of pace for this sub.

This is REALLY long and I'm afraid most will not bother to read it all, can you put in a bolded TLDR at the end?

Human: For starters, I am not an experienced investor, which I suppose is self-evident from this question. I left a company around 2014 and had about just around 12K left in a 401K there. I hadn't been with the company long, and was not fully vested. Since that time, the fund has grown by about $5000, which is actually better than some of my other IRAs. Given the growth, I have not felt very motivated to roll it into something else. I have a couple of questions. Does that vesting percentage amount stay constant as long as I have it in there? If the fund is actually performing better than some of my managed funds (betterment, futureadvisor, etc), should I even worry about rolling it over to something like that? I would be interested in recommendations of things I should be considering.

What funds are in the 401k? It's dangerous to assume that a portfolio that does better in a short 2-3 year horizon is a better allocated portfolio. If you rollover the 401k account, you can reallocate it or try to keep the same relative allocations with another fund (e.g. Vanguard's index funds or their own target retirement funds). That said, there isn't really a financial reason to prefer a rollover over keeping the funds in the 401k if you're happy with your 401k allocations, except that it's more work for you to keep an eye on multiple accounts. I personally prefer to rollover so I have everything in one place.

You may find these links helpful: - [401(k) Fund Selection Guide](http://www.reddit.com/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](http://www.reddit.com/r/personalfinance/wiki/401k) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: TL;DR: Would like to know common putfalls and warning signs on an employee owned stock based retirement system and if my unmatched 401k and my wife's 6%matched 401k contributions will be enough for retirement. I recently seperated from the military after 6 years. I joined up when I was fairly young and never participated in the Thrift Savings Plan that they offer, so now that Im out I want to get your opinion of what I should do to save for retirement, along with your opinions on the type of retirement savings plans that my new employer offers. Luckily I was taught a well paying trade in the military, and I landed a job with a decently sized (over 500 employees) up and coming HVAC company. So far I have been incredibly impressed with how well they treat their employees, along with the CEO's vision for the company, and I am an extremely cynical person. The company is employee-owned, and they participate in the game-sharing retirement savings system, which means that all employees are given stock in the company quarterly, how much of which is based on a percentage of your annual salary. Since they switched the company over to this program 6 years ago, stock prices have risen from I think like 3 dollars a share to where it is now at 33 dollars a share. After retirement, the company has to buy back all the shares you have accumulated throughout your time at the company over the course of the first five years of your retirement. The CEO has stated that while we cant expect to see such massive growth long term, he does expect to see around an average of 20% yearly growth over the course of the next 20 years or so. Because we recieve this stock for free, the company does not do any matching of 401k contributions (although they do have it written into the plan they can institute a matching rate later if they have the financial means to do so) So my question(s) is/are: Do any of you know of any pitfalls and warning signs to look out for with this system? It seems great to me. I still plan on contributing as much as I can afford to my 401k, and my wife's company matches up to 6% I think on her 401k contributions. Is this going to be enough to enjoy a retirement at say 60k or so a year give or take? Thats my goal for right now, hopefully that number will increase but that number will at least get us by, especially if we can pay off our house by then.

>So my question(s) is/are: Do any of you know of any pitfalls and warning signs to look out for with this system? It seems great to me. You listed a bunch of them 1) you are taking incredible risk by not being diversified. You already work at this company, do you want to tie up all your savings in it too? 2) Unreasonable growth expectations. 20% annual growth over the next 20 years is all but implausible So... this stock is given to you outside of the 401k system? Can you sell it?

You may find these links helpful: - [Retirement Accounts](https://www.reddit.com/r/personalfinance/wiki/index#wiki_retirement_accounts) (articles on 401(k) plans, IRAs, and more) - ["How to handle $"](http://www.reddit.com/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hey /r/personalfinance, I need to ask for a raise but have no idea how to do it. Basically I'm a teenager working a pretty decent part-time job. At this job I've been more or less promoted (my responsibility and job difficulty has gone way up) but I'm still making minimum wage. I've asked my manager about my performance and from the sounds of it I've been doing really well. However, this job is too stressful to be making as little as I am, and especially seeing my long-term (10 years) personal relationship with the company and owner I'm upset I haven't gotten a raise. Am I justified in asking for one as a part-time wagie? I could quit right now and work at a grocery store doing an easier job for more. How would one ask for a raise in the first place?

For a part time minimum wage job, just go ask your manager. If they say no, then go apply for a job at the grocery store.

"I could quit right now and work at a grocery store doing an easier job for more." Sounds like you already know what to do...

Human: Hey reddit, im a 20 year old doing her taxes on her own for the first time. I live with my grandad and work part time to save some money to go back to school. My mother lives with her boyfriend in another city. She claimed me as a dependent without telling me. I havent done my taxes yet because im not quite sure what to do. She claimed i told her it was alright to claim me, but i really needed to money for bills and what not. She already spent all the tax money. So i had a few questions: Was she right to claim me? Will i be receiving less money from my taxes? What should i do regarding her claiming me? Thanks for all the help!

> Was she right to claim me? If you were over 19 in 2016 and not a student, she can't claim you if you made over 4k. There are probably other reasons too, but that's the simplest one. It doesn't matter if you told her it was ok or not. She legally cannot claim you. > Will i be receiving less money from my taxes? Depending on how much you made you will have a greater tax liability if you don't claim yourself >What should i do regarding her claiming me? Fill out your taxes accurately and correctly. This most likely means claiming yourself. You'll need to mail it in since she already claimed you. The IRS will notice you were claimed twice and will send you both a letter saying if you incorrectly claimed the person to amend your taxes. You will do nothing. If your mom does nothing then the IRS will likely investigate it and your mom will need to prove she's able to claim you. She won't be able to and will have to pay back the amount she incorrectly got along, most likely, with fees and penalties.

You may find these links helpful: - [Tax Software Megathread](http://redd.it/5ohy01) - [Taxes wiki page](https://www.reddit.com/r/personalfinance/wiki/taxes) - [Understanding tax brackets](https://www.reddit.com/r/personalfinance/wiki/taxes#wiki_eli5.3A_taxable_income.2C_tax_brackets.2C_marginal_tax_rates) - [W-4 IRS Withholding Calculator](http://www.irs.gov/Individuals/IRS-Withholding-Calculator) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: I recently got into my first auto accident. I received notice that the claims were covered etc. but no notice of potential rate increases. When should I expect a rate increase? Then a couple weeks later bumped into a friends car I have the option of paying out of pocket or going through insurance. The estimate is 1077.00 would it make sense to pay out of pocket or claim it? I have the money, but if my rates but would like to know if my rates are destined to increase because the first accident then it would make sense to claim it. If my rates will go up more due to the second accident then it make make sense to pay out outright. How can I find out my increased amount under these 2 scenarios? What questions should I be asking my insurance company?

>Then a couple weeks later bumped into a friends car Seems like the most reasonable thing you can do to keep your rates low is to pay attention to where you're going when you're driving a 3000lb machine that's capable of killing someone. It only makes sense to me. Pay out of pocket for the accident because some insurances have a forgiveness program for the first accident. I can't think of any that has a forgiveness program for the second. And God forbid you get into a third.

If you have the option to not go through insurance do that. I had a minor claim (bumper got caught on a snow bank and ripped off) 4 months after an at fault accident. When I called my insurance company they said my rate might go up $5 a month but that's it. I didn't have any other way to fix it at the time so I claimed it. Well it went through as an at fault accident and they dropped me for having 2 in one year. Then I had a hell of a time finding affordable insurance after that. Not worth it.

Human: I inherited ~3 million dollars of land but I don't need any money right now. Should I sell the land and do something else with the money or keep the land which has tripled in value in the last decade? I also inherited around 1 million dollars in cash and I'm not sure what to do with it either. I want something super safe, I don't favor a lot of risk. I know people love index funds but they don't seem that safe to me.

You need to get a financial advisor involved with this kind of thing.

get a cell tower contract or put up a windmill farm

Human: **Financial background:** - Income ~$2,000/mo. net (all from my wife's job). I am in the process of starting a new business, so don't have much take home right now. In 6 months I should be profiting a little which would bring us up to ~$4K/mo. - Expenses: Kept very low. We can be quite frugal. - Debt: none. cars paid for cash. - Emergency fund: $10K   We've got two places we're looking at to rent, in roughly the same area of town. **I work from home, so we need a 2 bedroom** - Place A: $895/mo. - 2 bedroom apartment on 2nd floor - 980 sq. ft. - complex is little busier area with slightly rougher crowd. We don't feel in danger at all, just an observation. - Place B: $995/mo. - 2 bedroom townhouse - 1,200 sq. ft. - attached 2 car garage & backs up to neighborhood park - located in quieter neighborhood with older folks living there (so you know it can't be that bad).   We really like "Place B", mainly because of the garage (we have lots of outdoor rec. gear and go camping/hiking about every other weekend. I love to work on the car. Etc. The kitchen is quite big too (my wife's favorite part). However, it is more $$ per month and we figured the utilities would be more expensive as well (larger sq. footage + vaulted ceilings etc.).   If you were in our situation, what would you do?   **Edit:** If it felt at any point our expenses were more than our income, I have no problem picking up a part time job temporarily. For those curious about our current expenses, here they are: - Rent: $860/mo (going up to $910 next month) - Vehicle Fuel: $100/mo - Cell phone: $60/mo - Groceries: $300/mo currently (we eat healthy), but can drop that down to $200/mo - rental + car insurance: $70/mo - Electric + gas utilities: $60/mo (1 bedroom apt.) - Internet: $25/mo - Health insurance: $45/mo - Entertainment: $40/mo - Personal spending (combined): $40/mo

Strongly advise against spending half your income on rent.

Half your income on rent is too much. No sane landlord will rent to you unless you make 3x the rent as income. Why do you need a two bedroom to work from home? Won't your wife be gone while you are working? Or can you use the living room?

Human: I owe ~$295k on my mortgage, but the property value has dropped to $180k. What are my options? I live in Alberta. Ideally I could get the bank to reduce the remaining principal to the value of the property. Is there such a mortgage modification that I could pursue? How would I do so and what would I ask for? Alternatively I could file a quit claim in such a way that would prevent the bank from coming after me for more money. Any tips for how to proceed with this? Finally I could declare bankruptcy. I don't have much assets (an ~$8k vehicle; and the asset allowance is $5k I believe). I'm planning on going back to school so my income will be minimal for a few years. Thanks for any tips/advice!

I'm going to be frank...I do not know of any mortgage system in any country in the world, where a mortgage holder magically reduces your principal to the current value of the property or lets you file a quit claim and forgives the money you owe them over and above the value of the property. Except for the option of bankruptcy, what you want is to have the bank ignore that you owe $120,000 over the value of your asset, just because you don't want to owe $120,000 and somehow feel entitled to not owe it.

I get where you're coming from with the point about negative equity, but in reality that's all on paper. The reality of the situation is that you have a home which I'd assume you've already dumped a significant amount of money into so far. Even with the negative equity it makes sense to keep paying off the home instead of trying to walk away and tank your credit with what I assume is the intention to buy another home. You may have -$180k equity in this home, but if you somehow secured a new mortgage you'd have no equity in the new home and you've realized all the losses for what you've paid in so far on this home. You bought the house and morally you are obligated to take out the loan you signed for. Also, realize that you have what I would assume is an affordable home which is an opportunity that many in this world do not have.

Human: I love schwabs American Express that I get 1.5% back on. And schwabs customer service has been good in the little I had to use them. I wanna get some mutual funds. And it'd be easier to stick with Schwab. But if vanguard is that much better I'll do it there instead. What's the consensus on Schwab? Was even thinking of maybe using them for my checking account.

vanguard was the pioneer into very low expense ratio index funds, so they were the first out the gate and became the status quo. the other companies took notice of the trend and started offering comparable funds, some at even lower expense ratios than vanguard (though you are talking hundredths of a point, which is basically nothing). they are all basically the same now as far as expense ratio, so go with whichever one you want. some have better interfaces than others, but they all get the job done.

I joined fidelity because of the online platform [or what I had heard about it] and I'm from MA so wantrd to support a boston based group.

Human: So, the husband and I have been debating the merits of buying a home instead of continuing to rent. We currently pay $1,000 a month in rent for an (overpriced, IMO) apartment, which we can comfortably afford. Were we to keep renting, I’d like to find something around the $800 range, which is definitely doable In our area (Las Vegas). Conversely, we could find a condo for around $100,000, but we wouldn’t feel comfortable putting more than 8 or 9% down because it would require taking more out of our savings than we're ok with. So with HOA fees and PMI, we’d probably be paying anywhere between $800-$950 a month, according to the calculations I’ve done. So, essentially, the monthly payments would be approx. the same. We would probably stay at the home about 5-6 years before trying to sell and move. My question is this. Since we’d only be putting down a small percentage for our down payment, is there any real upside to buying at this point? I know in the beginning, you’re mostly paying interest and very little towards principal on your mortgage. Would we build any equity at all? Would renting be the best choice, or -since the costs are similar- does buying make sense?

Few questions for you - What is the reason for wanting to buy a condo? You're saying you would stay at the home for 5-6 years before selling and moving. What are you hoping will happen? - You say that you don't want to put more than 8-9% down. How much do you have in cash savings? - What is your long term financial goal in relation to housing? Are you looking to become a landlord, or are you trying to flip houses? Are you just looking for a nice home to buy and live in for a long time? I think this impacts the decision a lot. Personally, I like the freedom and low overhead of renting. It allows me to go where the work is, and keep all my costs low. In my last place, even though it's not for a family, I paid less in rent for a room in a house than I imagine my landlord paid in a combination of taxes and utilities. Although in the big picture he's living on the property rent-free because his tenants pay for the whole mortgage. So I guess we can call that mutually beneficial. I wouldn't want the responsibility of renting out a whole house though unless I was already very financially comfortable. And everyone has a different comfort level of what they can tolerate, how much savings they need to have before making choices like this, how much financial risk to take - such as if something goes wrong with the property that you need to fix and you need to drop 12 grand on for instance. What if there's something wrong with the plumbing, etc. If you tell me how much you have in savings and what your combined incomes are that may help in giving my opinion on renting vs buying.

Live in Vegas as well. Was just discussing this with the gf.

Human: To keep it short, I want to squash a 8K Amex Everyday Card balance.. I have read on this chain that it can help your credit by zeroing out your card or pay-in-full. My next payment is due on the 27th of March (min $116) . Not sure how they report to the credit agencies? What would be the best time this month to squash the balance to register the maximum effect with the credit agencies? If I zero it out now, I will also use it for the rest if the month, will that effect the max credit boost? So my guess is -On due date, 27th? Thx all.

Pay your statement balance in full by the due date on your bill. There's no need to complicate things by changing due dates or amounts paid or using all these credit buzzwords...

You may find these links helpful: - [Credit-related wiki pages](http://www.reddit.com/r/personalfinance/wiki/index#wiki_credit) - [Credit Cards](http://www.reddit.com/r/personalfinance/wiki/creditcards) - [FICO / Credit Scores](http://www.reddit.com/r/personalfinance/wiki/fico) - [Improving Credit Scores and Building Credit](http://www.reddit.com/r/personalfinance/wiki/credit_building) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*

Human: Hello everyone! I defaulted on my private student loan through Navient (formerly Sallie Mae) after they refused to work with me to lower my payments or offer a forbearance during a period of time I was unemployed and it is now placed in collections through some weird "Law Firm" (Weltman, Weinberg & Reis Co) / collections agency a year and a half later for the amount of $26,000. The letter stated "they were through with collections efforts and invite me to settle this matter." After talking to a woman who seemed decent enough, she offered to have this settled for around 13k (I recorded the conversation also). She said I can either pay the entire amount (which I don't have at all) or place a down payment of 2k, and make payments up to 48 months and then proceeded to pressure to pay anything I could that night which I didn't. While settling it for 13k sounds great, I'm obviously a little weary and need advice on how to approach this since I have read horror stories of others who agreed on a settlement repayment plan and have had the balance returned in full after payments have been made. So with that noted I have not yet agreed or have requested validation of the debt. I'm going to list some things that I have questions about to make it easier: 1.Should I request a validation of debt letter to buy some time in regards to deciding to settle the debt? I've read there are pro/cons to this. While I am certain it is my debt, I'm a little confused because a) the balance remains on my Navient profile online b) it is not appearing on my credit report as in collections. It is under a section called "account review inquiries" and then has their name listed. Does anyone know what this means exactly? I looked it up, and it appears to be some kind of review of my credit report on their behalf. Is this legal? 2.I was told I can't release the co-signer after agreeing to settle. She said that with Navient he'd have to agree to pay 30% of the original balance in order to be released. My question is why would it matter what Navient's policies are if this is a collection agency? Doesn't that mean Navient sold the debt to them? So why would it apply at this point. Should I consult with an attorney for advice on a settlement agreement so I don't get screwed over in the long run and I am protected in writing? Or Should I seek bankruptcy (my credit is awful (rating 420's), mostly due to identity theft a couple years back but after somewhat restoring it myself it has plummeted due to unemployment 1 year ago. I have about 4-5k in debt in credit cards and other collections not due to fall off the report until 2023, also getting collection calls/letters from these places; a fresh start doesn't seem like a bad idea! I'm in my late 20's). 3.How would bankruptcy affect my co-signer? He is on social security benefits and is now living another country. From what I've read, a loan can be solely transferred to a co-signer after the other borrower files bankruptcy, however from my understanding private loans are not protected federally therefore potentially being released on bankruptcy and/or unable to garnish social security wages. I'm not sure whether or not him living outside the country is beneficial or not but crossing my fingers it is as I feel totally awful for putting him this position in the first place. Also, how would bankruptcy affect my federal loans? I know they are nearly impossible to discharge, the majority of my college loans are federal (about 80k: I received an MA also) they are for the most part in good standing, but I missed a couple payments recently and it hit my credit report further damaging it. Will those bad remarks be erased in bankruptcy ch.7? Which is my main concern, because if I do bankruptcy I want a good start! I'm currently on forbearance until the summer and then I will be choosing an income-based repayment plan (which is an entire other conversation in itself, but one stepping stone at a time!). I don't intend to have those loans discharged (I wish) but just wondering if it would cause further issues if I did do a bankruptcy and if negative remarks/reporting would be removed. Is there anyone who has/or is currently dealing with this? (I know there is but is anyone willing to talk about their stories on how they approached, succeeded or are just flat out worried like me!) I've been feeling extremely stressed out about all of this and seeking some support. Sorry for the long post, but hopefully I can seek some relief! Also if it helps: I'm 27, make less than 20k a year, don't own property besides a car that's worth about 7k that I paid in full for.

I went through this about 2 years ago, in 2009 I defaulted on a private loan cause the economy sucked and I was too young and stupid to answer the phone. I settled 60k in loans for 17k, and I had to ask my family for the money. A general rule is that you can't get rid of the student loan unless you die, or become seriously disabled. There is no discharging any student loan through bankruptcy, especially a private student loan. I can't really speak for your other debts, but I can give you my experience with this situation. The only time you can consider yourself in considerable deep shit with this loan is when someone knocks on your door and hands you a court order (it has to be done in person), which you'll have to reply to within 30ish days. Until then, you're still safe, but i recommend settling before it gets to that point (took them several years til it got to this point). You already have them at 50%, you can continue to negotiate it down a bit. Also, this is a long shot, but check the statute of limitations in your state, it starts at the last date you paid the loan (feel free to correct me if I'm wrong). Hiring a lawyer is a great idea, I hired a lawyer for $250. Collection "law firms" love to talk to real lawyers and your lawyer will bypass the collection lady that answers the phone and talk to the more laid back collection lawyer in the back. Your lawyer will then vouch for your inability to pay and continue to negotiate on your behalf. The lawyer will then come back to you with (hopefully) a couple thousand shaved off on the settlement. My lawyer saved me $3,000. If you have the money to settle, give it to your lawyer and they will send it off for a small fee. For me, investing in a lawyer saved me tons of money, relieved a lot of stress and phone calls. Just paying someone $250 to make all the phone calls and do the talking was worth it. I used a small local law firm that was near my house, I just walked in and told them my situation. Also, discharged debt is considered taxable income, and you'll have to deal with this if the collection company sends you a tax form. If you get a lawyer, ask them about it. Hope this helps.

You may find these links helpful: - [What's the best way to pay down my debt?](http://www.reddit.com/r/personalfinance/wiki/debt#wiki_what.27s_the_best_way_to_pay_down_my_debt.3F) - [Dealing with collections](http://www.reddit.com/r/personalfinance/wiki/collections) - [Credit Repair](http://www.reddit.com/r/personalfinance/wiki/credit_building#wiki_i_have_bad_credit.2C_and_i_am_looking_to_repair_it.) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*