It seems that you were doing everything you can to collect your money together in your twenties, such as paying your bills on time and recognizing your religion.
But the forces outside your control have gone down. No, it is not a disease or unemployment. It is your father.
Even if you are at the head of your money, their behavior can affect you. While parents usually have the best intentions, they are also human. If you are not more financially intelligent, they may have long -term consequences for your money.
As you participated in signing a car loan with your mother, you didn’t know anything better and you may think this step would help build your credit, when you don’t have anything.
But it seems that instead of paying the loan, your mother may have used her salary to go shopping instead.
Here is what this means and what you can do to fix this situation.
When you participate in the signing of a loan, you tell the lender that you agree to be responsible for religion. If the borrower is not able to pay the loan and associated fees, you will need this, or it may harm your credit. If the loan goes to default, the car can be carried, and this negative sign will appear in your credit report because credit offices will report the car loan to you.
according to Equifax“Once you are registered in your credit reports, (cars regeneration) can affect your credit scores for up to seven years. Credit behaviors that usually lead to re -ownership, such as missed payments and underdeveloped loans, may also lead to negative signs of your credit reports.”
With a low credit degree, it may be difficult to qualify for a loan like a mortgage. Even if you can, you may be limited to your options. The lenders may not offer you the most competitive interest rates. You can pay more in interest fees, which costs you tens of thousands of dollars or more throughout your mortgage life.
You may also have to pay higher Car insurance Less credit installments.
You can engage in your mother’s car loan or contact the lender and negotiate the payment plan to avoid the failure to pay. This may cost you thousands of dollars – the money you may save for goals such as marriage and buying a house.
If possible, you can sell the car yourself and arrange another form of transportation for your father. You can then use the money to pay as possible as possible. Financial teacher Dave Ramsey recommends doing this and avoid voluntary re -voluntary re -operations.
Read more: This is the way Use a “4 square method” to make great profits from you – How can you make sure to pay a fair price for all the costs of your car
“If the sale covers the remaining balance of the loan, then you are free of charge! But if not, it is better to get a small loan of the difference,” His website says on the web. “Paying this smaller loan will be much better than paying the deficit balance balance (not to mention all the fees and link Reebo to your credit record).”
It is possible to rebuild your credit degree by simultaneously handling the loan.
Once this loan is far from the road, continue what you do to positively influence your credit degree before. Pay your loans on time And avoid getting any new loans. If you have credit cards, be sure to lower your balances and pay the balance every month.
The key is consistent behavior and time. It is difficult to determine the duration of your degrees to return to the highest level you want. However, you can monitor it to see where you stand periodically.
To protect yourself from entering into a similar position, avoid signing loans if you are not sure whether the borrower will pay the loan on time.
Preparing the border is a key if you want to separate your money from your loved ones.
Although he may feel uncomfortable, he deserves to sit for them and clarify what you want to do in terms of your money.
For example, you no longer agree to participate in signing any loans or lending money to pay a loan. Or if you submit the money, set an end to the amount and stick to it.
You can also provide their help in their money management strategies. If they are not ready to accept your help, the best thing you can do is to provide educational materials and retreat.
This article only provides information and should not be explained as advice. It is provided without guarantee of any kind.
The post My mom fell behind on an auto loan I co-signed for her and it has now tanked my credit score — what do I do? first appeared on Investorempires.com.
