“Dear Steve,
I was recently the victim of a fraudulent loan scam losing over $5,000. Federal/State authorities are looking into the company. As a result of this, many of my bill payments have fallen behind and my credit score is poor.
Should I try to get a personal loan with a co-signer with good credit or work with a debt consolidation company of this. What do you suggest?
Catherine”
The Answer:
Dear Catherine,
I think it would be a gross mistake to suck someone else into this mess by asking them to be a co-signer. If you were unable to make the loan payments or fell behind the co-signer will have the full loan land in their lap. While they offered to help you because they cared about you, you should care for them and not allow them to potentially sacrifice their credit in your situation.
The loan scam was probably the catalyst that is going to drag you into bankruptcy to end these debts that you can’t pay. However, if the problem is that you are simply behind but can afford the regular monthly payments then contact a debt management company and learn more about the debt management plan they offer to help you get back on track with your creditors.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.
If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.