Here’s a new resource for getting free advice from credit counselors associated with the National Foundation for Credit Counseling. The organization has teamed up with MSN, and during most weekdays counselors are on hand at the Ask a Credit Counselor Message Board to answer your questions.
Here’s an example of a recent question and answer session, but I’m only including a portion of the answer.
Question: Two months ago I co-signed a car loan for my son and now he is not making the payments. I don’t need another car, how can I get out from under this one without ruining my credit?
Answer: This is a life lesson on why you should not cosign for a person, even though you were only trying to help. You will not be able to “get out” from the debt. In order to keep your credit in line, you need to consider paying the payments until your son can start resuming the payments himself. A stern conversation with your son may be in order.
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{ 4 comments… read them below or add one }
FLEXO! She can sell the car for what is remaining on the loan. Like a “short sale” for cars.
I am stuck with credit card debt that I cannot keep up with. I am paying on three cards @ 28%-32% interest due to lates and over limits, I am in a option arm mortgage that will be steady for three more years, then re-am. I am considering an offer on one card to take a reduced rate term loan (60 Months) but this will show as a Branch Account closure on my credit report. How will this affect my refinance options when three years is up. How much (if i am paying off the total) will this affect my credit score? My income is barely enough to sustain where I’m at.
Help, I really have messed my credit up . I went through a divorce, Let our house go back to bank, &Let my car go back ,owe 11000 they will maybe sell it for 5000 ,I will owe difference. I have maybe 2000 in other bills. Long story as to why I am in this mess , but how do I get out .I pay all my other bills on time.I make to much for bankruptcy .I can file chapter 13 but not 7 .Does chapter 13 really fix your credit and if so how long does it take? Do I have any better options?Oh and the house shows on my report as balance 0 .How do I find out if they are charging me for difference .
My husband co-signed for his sister. We were trying to buy a house and to find out she has not payed three months in a row! Now we cant buy a house and my husbands credit went in ruin. i never agreed on him co-signing since his sister never pays anything. for example he got a bowflex that she was going to pay. he ended paying it all off 3 years later!!! even if its family do not co-sign!!!!!