Tammi K Posted February 8, 2013 Share Posted February 8, 2013 And that we should actually go ahead and pay off my BIL's student loan? Do people actually do that? Pay for houses they foreclosed on and someone else's student loan? It sounds like you're misunderstanding the obligation that was accepted when the student loan was co-signed. It's become YOUR loan too. So, yes, of course you pay it off. Why do you think the lender wants a co-signer? So that if there is a default, SOMEONE pays the bill. Quote Link to comment Share on other sites More sharing options...
gingersmom Posted February 8, 2013 Share Posted February 8, 2013 I would go with a credit counseling agency. I did a lot of research before choosing one. You are going to have to pay off all old debts ( except house I assume) and move forward. It took years to accumulate those debts, it may take years to pay them off. It took me years to pay off my debts and then I got a credit card with a very low credit line. It has been about 7 years now and my credit is 1000% better. Quote Link to comment Share on other sites More sharing options...
I.Dup. Posted February 8, 2013 Author Share Posted February 8, 2013 I would go with a credit counseling agency. I did a lot of research before choosing one. Can you share the kinds of things you looked for in an agency? Quote Link to comment Share on other sites More sharing options...
GraciebytheBay Posted February 8, 2013 Share Posted February 8, 2013 I only know that we were once counseled to be sure we got rid of all past due accounts. He said that even if your credit report says "current" (not necessarily "paid") on accounts, it increases your score substantially. I would work on paying off debt in conjunction with showing you could pay something on time. I am a believer that credit cards can be beneficial if used correctly, and I think this is one of those situations. I know it might seem like you are facing a monumental battle here, but the fact that you are facing the monster is HUGE! Knowledge is power! I would encourage you to list it all out - every debt you have. It hurts like heck to do this, but when you have, you can plan how to pay them off and maybe make some phone calls showing your desire to pay them off. There are some good debt reduction calculators on-line. I really feel for you. We've been through a more minor situation, but it was brutal nonetheless. It Be encouraged - you can do this with very focused effort! Good luck to you. :) Quote Link to comment Share on other sites More sharing options...
Danestress Posted February 9, 2013 Share Posted February 9, 2013 Would you or your dh consider getting a part time job that you only used of debt reduction? I know no one wants to so this, but if you worked 15 hours a week at minimum wage, you could pay off the whole student debt loan in a year. The other debts sound small. Quote Link to comment Share on other sites More sharing options...
Lily_Grace Posted February 9, 2013 Share Posted February 9, 2013 Any tips? We have a foreclosure 7 years ago that is preventing us from being able to buy a house. We also have a lot (10 or so?) of late/default payments on random things, most under $300. One more thing- dh agreed to be a co-signor for his brother's student loan. Of course his brother defaulted and that is now on our credit as well, I think it's around $5,000. We have never used credit cards. So basically, everything on our credit report is negative. WWYD? Would you try to repair it so you could eventually buy a house, or just keep renting? We are torn on the urgency to buy a house, although I think paying off a house by the time we retire would be really nice. Our credit jumped 4 years ago when we -got rid of a huge budget drain -got current on all debts, delinquent included Within a year my score jumped 40pts, dh's 60, and two years later it was 100 points higher. It is certainly worth it. You have to rank what you want in order of importance. If any of those debts are still active, you need to pay them. Take $2K from your house buying fund and get current on all the ones you need to. Then make an arrangement with your BIL's loan company. THEN, go after your BIL - you make the payments to the loan company, he makes them to you. That way you're not blindsided again. Wait 6mo to a year, and look for that house. Quote Link to comment Share on other sites More sharing options...
mytwomonkeys Posted February 9, 2013 Share Posted February 9, 2013 Can you share the kinds of things you looked for in an agency? the only one i know of that clark howard recommends is consumer credit counseling services (clearpoint). there may be other ones of course, but this one has a good reputation. Quote Link to comment Share on other sites More sharing options...
babs Posted February 9, 2013 Share Posted February 9, 2013 Find a good mortgage loan guy...not from an institutional lender...and he will help you. Do NOT hire one of those companies that help you pay your debt...very bad. I have a close relative who is a loan officer and he is always helping folks repair credit...does an awesome job. He KNOWS credit issues inside and out. talk to several and get a lot of advice then choose the one who sounds like he knows what he is doing. Then give him your loan biz when you buy! Quote Link to comment Share on other sites More sharing options...
babs Posted February 9, 2013 Share Posted February 9, 2013 Can you share the kinds of things you looked for in an agency? Do not use these agencies...look at my other post. Quote Link to comment Share on other sites More sharing options...
linguistmama Posted February 9, 2013 Share Posted February 9, 2013 We had a somewhat similar co-signing/loan situation with dh's brother and brother's wife so you have my sympathy on how frustrating it is. Is your dh good at having a serious talk like that? In our case my dh had done that, but his brother's wife was still trying to spin things to her advantage. I mention this in case it is helpful in your situation, if not then ignore. :) I had to print out years of bank statements and other documents to show my sister in law that we knew exactly what the situation was and were not going to be taken in by any excuses. When I pulled out the huge stack of paperwork she quit arguing. My point being that we had to get across that we meant business. I didn't want it to end up affecting our credit. Quote Link to comment Share on other sites More sharing options...
caroljenn Posted February 9, 2013 Share Posted February 9, 2013 You are going to have to get a secured credit card. The more money you can put down, the better it will look. The credit companies only see your "available" credit, not the fact that it is secured and it will look good for you to have credit available. Only charge smallthings and pay it on time, religiously. The "good" payments will start to show up and offset the bads. Go to myfico forums. They are free and the people there are all concerned with improving their credit scores like we are for homeschooling. You will learn a lot! Good luck! Quote Link to comment Share on other sites More sharing options...
babs Posted February 13, 2013 Share Posted February 13, 2013 And please, go to your local community college and sign up for a biz law course. Everyone should know the basics that they teach I that class. Student debt and taxes follow you through bankruptcy...they do not go away! I think I learned more in that class that is useful to my everyday life than any other course I took! Quote Link to comment Share on other sites More sharing options...
Joanne Posted February 14, 2013 Share Posted February 14, 2013 Yeesh. There is, IMO, some harsh arrogance in this thread. So, let me say that wanting a house to own and asking for ways to clean up your credit (an act which be definition will lead you to pay debts you owe) is acceptable, understandable, and reasonable. Most people can make significant progress, score wise, in a year. Good luck to you! Quote Link to comment Share on other sites More sharing options...
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