Recent comments in /f/personalfinance

ChiMello t1_jea65c2 wrote

Reply to Why are we encouraged to charge everything to a credit card but get penalized for high credit utilization? by New-Row7111

For one thing, utilization is based on your balance when the statement is generated with most credit cards (a few report more than monthly but for most the statement balance is the % that gets reported). For example if your balance on your statement is $650 on your $700 card, your utilization that your credit card company will report that month is going to be nearly 93%, even if you pay the entire $650 before the due date.

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navel-encounters t1_jea63nq wrote

Reply to What's the rule of thumb for paying off credit card balance? by [deleted]

Pay as MUCH as you can each month to reduce the high interest rate. If you look at your bill, there will be a section showing how many years (decades!) it will take to pay off your card with the minimum amount and another showing X amount over 3 years. Both will show how much you spent on interest over that period of time.

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HoneyBadger302 t1_jea5sop wrote

Reply to Loan to friend Question by Locutus747

Very rarely do situations like this work out. I'd be very nervous on why the bank would fund most of it, but not all of it - clearly there is a risk there that they are seeing. Also, $15K is a hunk of money to donate on a really big maybe. Starting a business is rough, there are ups and downs, and as the "friends" you will be the last to be paid back, and that's IF you ever are.

You're not saying what the business is though, either. If it's an established business (say, a restaurant as an example) that has been doing well enough, and they are simply taking it over (and have the experience to do so), then I might be more open to the idea. Starting something from scratch, however, I would probably pass on investing in, at least until they can show how the bank's loan is getting paid back and money is coming in...

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Bad_DNA t1_jea5obk wrote

Reply to Book recommendations by Constant-Thing-8744

One of the best resources I've found isn't a book, but a podcast called Big Picture Retirement. Start at the beginning, as what they discuss tends to build on prior knowledge.

Mad Fientist is good for those looking to tax optimize and FIRE. The wiki here has good recommendations for reading -- Simple Path to Wealth is an easy read. Something else not stressed enough: Get it together - organize your records so your family won't have to (Cullin, part of the NOLO series). Two free books: https://paulmerriman.com/millions-downloads/

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sponge_bucket t1_jea4m90 wrote

Reply to Loan to friend Question by Locutus747

As others have said this is a great way to turn good friends into strangers who ignore you really fast. It sounds like you’re going to go through with it but if you can back out I would. If they have access to 60k but not the remaining 15k the question for me would be “why would the bank give them nearly enough but not the full amount?”

I hope this works out for you. Best of luck!

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tharesabeveragehere t1_jea2zjm wrote

Reply to Loan to friend Question by Locutus747

Why would you not ask for a partnership agreement instead of a loan? This is where the term 'silent partner' was born.

If the business does well, you're the last one to get paid, in a "friend's money" loan arrangement. Similarly, if the business doesn't do well, you're the last one to get paid in this arrangement.

Banks provide loans.

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