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Heads_up_on_co-signing_loans

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									Title:
Heads up on co-signing loans


Word Count:
217


Summary:
Be wary of the dangers behind cosigning loans. You may think you're helping your child buy his first car,
but the facts go deeper than that.



Keywords:
tax deductions, tax tips, wealth building



Article Body:
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?
credit disputes letters

								
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