I am the co-signer on my daughter’s student loans that she has defaulted on. It has gone to the collection agencies and they are demanding that I pay them $68,000 right now. I don’t have that kind of money. What can I do? Do I have any options?
- Audrey, Illinois
Defaulting on a private student loan can have serious effects: legal action can be taken against you, your wages may be garnished and your credit score will likely take a hit. “Just like federal education loans, private student loans are very difficult to discharge in bankruptcy,” adds Mark Kantrowitz, publisher of the websites FinAid.org and FastWeb.com.
My advice to you? Pick up the phone, call your lender and explain your situation. “If your financial situation is so destitute that there really isn’t any reasonable opportunity for you to repay the debt, you should be open More…
Hi Jean, I just read your book, “Pay It Down!” I have $15,00 in credit card debt. I am dedicated to cutting some major things in my life to cut down this debt. My question is, when I save $10 where am I putting it? Do you want me to put it in some sort of savings account, a piggy bank, or a safe?
- Antonio, Pennsylvania
First off, congrats on taking the first steps towards paying down your debts. I think that with the information you’ll find in “Pay It Down!” and your dedication to cutting down on spending, you’re on the right track to financial freedom.
Let’s talk about where to put the $10 you’re saving every day. Ideally, you should be keeping it in a high-yielding savings or More…
Why should you “Pay It Down?” Last week I took part in Portfolio’s “Business Beat” podcast to answer that very question and talk about the new, credit crunch edition of “Pay It Down!”. Listen in on the interview below for my answer.
About a week and a half ago, I released a new version of my best-selling book, Pay it Down! The updated version still includes my tried-and-true Rx for getting out of debt on $10 a day, but it also takes into account the changing times, including the CARD Act of 2009, a tighter credit market, and your tighter wallet. Even if you’ve read it before, there’s enough new that you may want to think about reading it again.
But I also took it a step further, and developed an online program, Debt Diet Online, that launches today on this website. More…
This morning on the fourth hour of Today, I was joined by the Hildebrandts, a couple that was able to pay off around $123,000 worth of debt. Watch the video below to hear how they did it.
I am the co-signer on my daughter’s student loans that she has defaulted on. It has gone to the collection agencies and they are demanding that I pay them $68,000 right now. I don’t have that kind of money. What can I do? Do I have any options?