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As parents, it's only natural for us to want to see our children succeed. However, by co-signing on expensive student loans without the proper budgeting and preparation, have you opened your family up to serious consequences down the line?
Dealing with a collections lawsuit is seldom the time for a do-it-yourself solution. If you have been sued, or are concerned about being sued in the future, it's never too early or too late to ask for help!
Recent studies show that the average household is in over $135,000 of debt. Even without the added personal strain of an accident or illness, many consumers are living paycheck-to-paycheck, teetering on the edge every month when it comes to their budget.
Even if you trust the person you're co-signing for, circumstances out of their control could render them unable to pay. If a creditor is unable to collect from the primary borrower, they have every right to pursue the co-signer.
The Federal Reserve Bank of New York reported in November 2018 that student loan delinquencies had risen 9.1%, compared to the 8.6% increase in the second quarter. This spike was noted as the largest jump in seven years.
While you may be tempted to put off dealing with debt issues until the last minute, a quick response is the best route towards a solution. The settlement, or even defense, of a collection lawsuit might be easier than you think.
Private student loans can be enticing for a few reasons, particularly if you have exhausted all the federal funding, grants, and scholarships available to you.
Not everyone who files for Chapter 7 bankruptcy is necessarily guilty of money mismanagement; illness, unemployment, or an accident may have caused their finances to spiral out of control.
While some creditors may give you some leeway due to sympathy over a serious life issue, eventually the collections activity will become aggressive. Business is business, and at the end of the day, they want their money.