 |
Heads up on co-signing loans |
|
|
Submitted by Kathleen Green
| RSS Feed
| Add Comment
| Bookmark Me!
In my opinion, if you co-sign a loan with a family member or a friend, you’re looking for trouble. Granted, if you want to help your child buy his first car, you may need to co-sign because the child does not have credit history yet. The danger is that if your son makes a late payment, the bank will come to you to pay it off. Be extremely judicious who you co-sign for. Because of the risk that another person could damage my credit, I will never co-sign for a friend or family.
It’s not homework, it’s an assignment
Outline the following; read these documents and understand every clause. There’s good and bad risk. Make sure you have the skill set to take a calculated risk?
1. home mortgage(s)
2. credit card agreements and statements
3. car loans or leases
4. insurance contracts
Get answers to these questions:
Do I understand the rules of this contract?
Do I understand the amount of risk I’m taking by agreeing to this contract?
Do I understand tax laws surrounding the contract?
Does the contract fit my priorities? Forget whether you think you deserve it (because you probably do)—can you afford it?
Can I afford to lose all or part of my money by engaging in this contract?
|
|
|
|
|
LinkedIn Recommendation:
 Jonah William - Owner at Tessier Marketing - I thought I was well versed in social media before I found Teo. He has helped me round my skill set with great information only he seems to teach. I went on the web and looked for it later, but it's just not there. The ShareThis.com counters for instance, which definitely don't work right... can't find that anywhere, but it's easy to prove once you know what to test for! Teo really has a way of getting to what works and what works best! - March 17, 2012, Jonah was Teo's client |
|
Featured [wealth building] Articles:
|
|
