I Co-Signed My Son's Student Loan And He's Not Paying
ฝัง
- เผยแพร่เมื่อ 17 พ.ย. 2016
- 💵 Create Your Free Budget! Sign up for EveryDollar ⮕ ter.li/6h2c45
📱Download the Ramsey Network App ⮕ ter.li/ajeshj
🛒 Visit The Ramsey Store ⮕ ter.li/7vyom2
📞 Have a question for the show? Call 888-825-5225 weekdays from 2-5 pm ET or send us a message ter.li/n88ly5
Explore More Shows from Ramsey Network:
🎙️ The Ramsey Show ⮕ ter.li/ng9950
🍸 Smart Money Happy Hour ⮕ ter.li/9gcp3d
🧠 The Dr. John Delony Show ⮕ ter.li/2u3mc0
💰 George Kamel ⮕ ter.li/1elws8
💡 The Rachel Cruze Show ⮕ ter.li/n2u6jc
💼 The Ken Coleman Show - Highlights ⮕ ter.li/1rbjr2
📈 EntreLeadership ⮕ ter.li/ktxv2k
Ramsey Solutions Privacy Policy
www.ramseysolutions.com/compa...
![[MIRRORED] LISA - ROCKSTAR 🎸 MV version #LISA #BLACKPINK #ROCKSTAR](http://i.ytimg.com/vi/-U58DuCCtZk/mqdefault.jpg)
Anytime you co-sign, expect to have to pay the loan yourself.
If you have to co-sign for a loan, more than likely it is doubtful he or she can pay the lender back.
Well here's a better ideal, how about NEVER co-sign. It's stupid.
but what if it's for christ jesus?
TheRosswise yep! Not everyone is responsible.
Soooo true.
Yeah, my little brother did this to my Mom after Dad refused to co-sign for him because he knew what would happen. And sure enough, he made a few payments and bailed leaving Mom holding the bag. He was making good money too and could have paid. What ended up happening was my Dad bailed Mom out and cut my brother out of his will and explained why.
Wow! You have a really smart Father ! And I’m glad that he took him out of the will. You can’t go around doing shady things, especially when you KNOW that you can pay. SMH. I would be so disappointed in your brother if he was my son. Just shows that he’s super selfish and ungrateful! Kuddos to your Father for holding him accountable!
Very good idea your father had. Good for him.
Good for Dad! I would do the exact same thing.
I hate and cringe when family and friends ask me to cosign for them, it's so hard to tell them no because I have love for them but I can't trust anyone with a financial commitment because anything can happen in life.
if you love them you will tell them no and why. Unless you have the money to give them then Do Not under anyway circumstance co-sign.
Yes lol learned my lesson i lent a cousin $5 never got it back. Best $5 spent never saw him again.
My sister wanted me to co-sign on a car for her last year. I said no, which turned out to be a good decision. She’s now having horrible financial difficulty and no way she be able to afford that car now....
If they loved you then they would not ask you to risk your financial future for their failure to grow up and pay their bills.
They don't love you if they asking you to sign away your life
Poor Dad...gets himself out of debt then gets hit with his grown child's debt.
The father wasn't out of debt - if you have co-signed on a loan you STILL have debt until it's paid off. Never co-sign if you want to help give the best gift you can give.
Read it once again and you will understand what's he really mean.
My point that college should be free. In Tenn junior college is free.
LOL, what a simp. First mistake, he got married. Secondly, he CO SIGNED? 3rd, FULL SAIL is SUPER EXPENSIVE.
@@silky2204 nothing is free! but it should be affordable!
I learned this lesson the hard way! NEVER co-sign. It destroys families. If you can't afford something with cash, or get a loan on your own never include no one else.
If you want to help someone else, don't co-sign. If you feel the need to help them, give them the money straight off. That way the 'help' cannot come back and bite you.
What happened to you? Tell us the story.
Iamyourmom not all people pay off their family members that's why u should never co-sign but ur probaly hard working which is why ur aunt co-signed with u.
I agree. I wouldn’t co-sign for someone else and I wouldn’t ask someone to co sign for me. It is a really bad deal especially for student loans which are the worst of the bunch.
Never help anyone
I'm 25 and making 60K. Paid off about 30k of student loans all by myself without my parent’s help. His son needs to grow a pair and be an adult.
Let me guess you live with your parents though
to each is own. some people choose not to pay for their debts. his son doesnt have to
Living with the parents is the smart move. Pay a few hundred for "rent", drive an older car, and pound down the debt. 2 or 3 years and you're ready to move on with life and make your parents proud.
Robert Bell problem is not everyone has this kind of safety net
@@DELTABOY04 and if you can't, you adapt. one can also have roommates, live in a cheap rental, forego the iPhone X, etc. It's only a few years while you are young, it can be done.
Full Sail... They borderline harassed me after a rep came to my high school and I just signed a piece of paper that said I was interested in graphic design or animation. When I saw how expensive they were I said NO WAY. They called me multiple times a week a one point and didn’t get the hint FOR YEARS. I was in year 2 of my AA when I basically yelled at them over the phone and said, “I am going to be a social worker. I am not interested and NEVER WILL BE. For the millionth time, don’t ever call me again!” It took 2 years, y’all.
I co signed for my son on an auto loan but for not more than I had in cash savings. He paid it off ahead of time. I feel fortunate after hearing this story.
This is the number #1 leason I learned from Judge Judy. Never co-sign for a family member.
I learned a lot about people by watching Judge Judy and People's Court. Human nature at it's worst.
No, even better, don't co-sign for ANYONE no matter who they are!
Never co-sign for anyone.
I learned to especially in family. Not all but some family members can be very manipulative.
"he is trying to be self-employed" smh, u have 53k in student loans and you are trying something. His son needs to start grinding!!
I hate this kind of response to this, like his self employment is him being lazy and he needs to go "work harder." If he's paying his rent and feeding himself off this self employment it's not like he's not making money. If he was living at home eating his dad's dinners rent free then I could understand the sentiment. But he's not, he's making rent on his own, his dad said so, and most jobs you can just "go get" are probably not going to improve that flow any better.
Sherrif He trucked his dad into paying a 50k dollar loan. He needs to work harder and get a second job to help his dad. Otherwise no one would have a problem.
@@SherrifOfNottingham His son can go on an income contingent plan for the loan. He's not making any money. + now his dad's credit is jacked up. The dude is 27 years old. He needs to take responsibility.
Dad should have known better.
@@SherrifOfNottingham He is 27 and single he could have delivered pizzas or/and do Uber and make decent side money to make payments on the loan. There really isn't any good excuse
The son should move back home with his dad and work 16 hours a day, sleep 8, repeat until he pays off the loan
lol..no
Holly, that would be the responsible thing to do. Unfortunately this “child” was never taught about responsibility.
I'm 26, and starting to understand why my father never wanted to co-sign any student loans for me. I'd never in a million years want to end up in a position like this, on either end.
Beans and rice is actually not that bad
What about Rice and Beans?
Best food ever.... Maybe not ever...
Oatmeal
I use to grab the take out sauce from Famous Dave BBQ Rich and Sassy uummm .
I actually like it.
Co-signing - you have nothing to gain and everything to lose. Don't do it.
If that's the attitude you have then don't have kids. They're expensive and the best parents make sacrifices to better their kids chances of success.
ScarletNight 53,000 dollar sacrifice for a worthless degree from a random art school? No I won’t make that “sacrifice” sorry.
You get a lower interest rate, but yeah lol, not much to gain
@@Excalibur2 No, the best parents are there for their kids, teach them integrity, respect, responsibility, tough love, discipline in the face of wrong behavior and the value of being honest and forthcoming about the problems they face. Giving of themselves is what the best parents do. Sure, money helps, but teaching them financial responsibility at a young age so it becomes a habit throughout the rest of their lives is a priceless trait to teach them. The problem is, so many parents don't have that talk with their kids and so their kids grow up to make the same stupid money decisions they saw them make. And the wealthy who hand their kids an easy path forward, with money, are not teaching them the value of that money because they didn't have to earn it and you won't appreciate the value of what you didn't have to earn. That's why many lotto winners go broke within a year.
@@taskcasburn6086 I agree with what you said, but my point was that you shouldn't look at your kids like they're an employee. You shouldn't look at every interaction you have with your kids as if it always has to benefit you. Most of the time, in fact, being a good parent has no direct upsides. Lots of missing sleep and tough conversations.
I recently signed for a private loan to pay my tuition. My dad offered to co-sign for me to get a lower interest but I was like no, let this be my responsibility.
I had to tell my child, No, and I didn't care how angry she got. I told her to get a second job, save that money, for a year and she won't need a cosigner. Child or no child NEVER COSIGN. I feel so sorry for this man
Oh my gosh how horrible......I could never imagine doing that to either of my parents.
You raised him... You signed for the loan... What was your question again?
I went to that scam school before for computer animation.i ended up leaving and going to a real school.
BEWARE TO ALL: do not go to Full Sail University!!!
Same with ITT Tech, they were huge and were pretty much forced to close. For profit and education just don't mix. I taught at ITT for a few quarters and I got fired for telling students it is a scam and to transfer community college asap. I think towards the end it was like 60K for two years! They were lucky to get $12 after graduating.
Full Sale is only good for learning to do a hobby, not a career.
@@scottstrang1583 boomer alert
Real school = takes twice as long and costs 40k more for a bachelors
☆Rachel Rochelle☆ The name of this "University" should have set off every alarm in your consciousness! Danger. Danger. Fraud alert!
Kids are a 20% joy & 80% pain.
BigBank New York And 100% worry.
10 minutes of joy. 30 years of regret.
Cosign means “you will be pretty much responsible for the rest of the payment after i pay the first one”
An unmotivated person trying to start a business is not going to happen! To be successful in your own business plan on 60-80 hours a week for many years.
You said it
Never cosign for anybody Unless you're ready to pay for it
I already told my kids. I will help pay for your tuition but I won’t co-sign for anything.
If he heard from Wells Fargo, then it's probably not a federally insured student loan. It's probably a private loan. He's in a really bad situation either way.
A private loan falls off credit in 7 years. I co-signed for my nephew and he defaulted. I disputed it and it fell off my credit lol
Sarah L i
Private loan = cant garnish wages
@@indo3052 they can garnish wages and they ({sallie Mae =national collegiate) take my ex husbands $270 / month on a $33,000 private student loan. He filed for bankruptcy}
It’s the worst !
NEVER consign on a loan!
My bro did this to my mom. Lets just say she doesn't give him $ anymore or cosign for him. Burn us once you don't get help again.
That's savage.
That’s how it goes 👍🏾
Here's my theory on life: Do not co-sign for ANYONE. Do not lend money because you'll make an enemy if and when you want to get repaid. If you are single, do not let anyone move in with you because it can be very hard to get them to move out.
I just paid off my student loan. I’m waiting for the official letter telling me l owe them zippo!
Check your credit it will tell you
It just never ends well...be strong and just say no to co-signing. It hurts more than it helps in the long run.
Student loans are destroying this country.
No. Stupid 18 year olds who think they are the smartest people in the world are.
@@lucuslopez6866 dumb people don't realise they dumb, there is more stupid people then smart ones
Correct. If we got rid of student loans...colleges would have to drop the price of tuition or they'd go out of business. Subsidizing anything is going to make the intuitions greedy. We see the same thing in the medical field with insurance. They over bill for EVERYTHING because they know they'll get away with it. It gets worse and worse until you are where we are now in the US. If people can't afford to pay, and insurance wasn't around to pay them....they'd have to lower prices and be competitive.
@Ann Linley I think that dude might've meant get rid of student loans all together, as in there are no more loans given out therefore colleges have to reduce price or nobody can afford it. I don't think he meant to just forgive debt.
University should get rid of general education. As a bio major I had to take stupid classes like literature, history, economics, a physical fitness class....its not high school. Our high schools should provide enough general education to be able to function in the world. No gen ed.... students finish their degrees at least 1 year earlier (25% cost reduction). Then just go to school all year, instead if 4 month 1st semester, 2 month break, 4 month 2nd semester, 2 month break. You'd be done in 2 years if you didn't have those 2 month breaks ....hey I just cut 50% of tuition for the nation. (Schools would do this if we didn't subsidize all the student loans with debt forgiveness).
Also bad parenting, bad public policy on education, misinformation on expectations of what college can do. Ect....can't blame 18 year olds for everything.
full sail... my old enemy
The son needs to definitely get a steady regular paying job and maybe even a second job. His self employment could be a nice side gig to make money. Also he should consider moving in with the dad, with the assumption that they get along for a year or two to save more money with a single housing cost between the both of them.
Tigerkem bit late but this was what i was thinking. Kid is young. Could probably work it of by himself in 3 years while his father takes care of the cost of living for him.
Yeah but the dad clearly doesn't respect the son enough for that to be a living arrangement worth it for the son to not just take the credit hit. It's a steep slope that most parents fall down all to often, thinking that they can throw away all their respect for their children and treat them like children well into their adulthood. Depending on the self employment a second job could just get in the way, reducing or evening out the eventual income. Parents get this way and it took my parents both having medical issues at the same time before they let my brother come live with them after kicking him out on the streets (literally living out of his car), I personally don't approve of parents "charging rent", I get when you're sharing expenses, that they can't afford the house bill on their own so you're living with them and helping, but charging rent as a "lesson" it's just insulting. Really just reminds me of the time where I brought my "rent" money down and my dad told me to hand it to my OLDER brother because he was getting an allowance because he was into his 7th year of school with still no degree and I was still in my first year and my dad wanted to "do it right this time around" for me.
But mostly I dislike the stigma that the nondescript "self employment" is just a side gig, as though they spend very little time actually working. Postmates is "self employment" and I worked 14 hours a day doing it.
never cosign for anything for anybody..if they cant do it alone they are not ready for whatever it is. when a lender says they want cosigner they are already assuming the person will default..already strike one.
How can a child not pay a loan for which a parent co-signed? That's like a slap in the face to the parent. My mom co-signed on my private loans and I'm upset because she's now tied to debt that I really didn't have to take out.
>> My mom co-signed on my private loans and I'm upset because she's now tied to debt that I really didn't have to take out.
why did you take it out then?
Yes of course.
My mother burned me, twice, never again.
My mother ripped me off greatly. The woman was vicious.
I hear this from other women. It ruins their lives.
Sad sad sad
Never co-sign. Either you give the money as a gift or let them take the loan out themselves. If they don’t qualify on their own, then they wait until they do qualify.
i cosigned for my sister car loan once, thank god for my brother-in-law because my sister like debts. That happened in my early twenty, now 30 year old i refuse to cosign for any one including my mom.
Yes, it's a good indicator someone can't afford a loan when the bank turns them down. I suppose there are exceptions...?
Gene K Student loans for important degrees, that's it.
@FeatherFlare if they are adults and need a co-signer chances are VERY high that they cannot afford it! Why should I risk my credit so that someone else can buy a material item they cannot afford?
I've learned the lesson to never sign or loan any money to family. Ive loaned a few thousand and I never got it back.
Never loan anything you can't afford to give away
Not really. I loaned out money for horse rescue to people over the Internet and did get it back. Thousands.
They will get in the habit of treating you like a piggybank because "family helps family". It's a good way to enable bad behavior and habits and I've seen it firsthand in my own family. There are exceptions, of course, and it really comes down to the trustworthiness of the individual(s) in question and the reasons for trying to help them but generally most people are not worthy of that kind of trust. One look at the shape society is in today can tell you that much.
@@taskcasburn6086 The unpredictability of repayment is why I do not engage in personal loans. However, I have loaned to people and only 1 person nailed me. I had a loan agreement so I wrote it off. People need bridges sometimes. I did borrow from a stranger and did pay it back within 4 mos. NP. If it is meant to be the $ will show up.
@@silky2204 That's a big if, and of course it's up to the sole discretion of the one either lending or standing good on a promissory note to make repayment, but I wouldn't advocate making it a habit. I would want to see that person's trustworthiness in other situations, and see their character for what it is before I'd ever commit to such an agreement. Only fools rush in and I've learned better than to just assume people will do the right thing. That's always an issue of character so understanding a person's character is the best indicator you will ever have of how true they are to their commitments.
Never co -sign for anyone for any reason. You are putting your life in someone else's hands. Mother,father,sister,brother or child none of them are you, no matter how much you love them.
@FeatherFlare I think we should still help family, but avoid the loan/co-sign approach
FeatherFlare give a cash gift but only give what you can afford not to get back. Never co-sign a loan for anyone.
@FeatherFlare it's sad but yeah, ignore them
@FeatherFlare You help them by giving them a gift in the amount that you can afford to spare. You can set up a promissory note but the likelihood is that it might be unpaid. Do not go into debt for others.
Perfect reason why you NEVER co-sign for anybody!
As a single mother, I foolishly co-signed my son's college loans. He is making the bare minimum payment while putting them in deferment whenever possible. I am watching them grow larger instead of smaller. It's horrifying. I saw one Sallee Mae loan grow from 4K to 5K after a deferment. I used some of my savings to pay that off. I am retiring next year and have no way to pay off his other 4 private loans (a home equity loan, but that would hurt me in retirement). He and his wife both make very good money. My son told me years ago that he had no intention of paying off the loans. Just to keep paying the minimum and rotating deferment. He hasn't defaulted or stopped paying but I feel like this is my burden. I tried to be released as co-signer but Navient refused him. He must have too much debt otherwise. I never dreamed he would turn out to be such an irresponsible person.
I hope you have a positive update for us
I am glad I actually told off Full Sail. They tried to recruit me and I told them I won't ever attend that school. I essentially called them a scam directly.
@@lightyears2go funny part is the actual reputable art and film schools are in my back yard. just a 3-hour drive and I am at University of Southern California School of Cinematic Arts
What is this school? Is it a regular college? Everyone on here says it's a scam.
I used to collect on defaulted student loans. Saw grandparents social security checks being garnished because the grandkid didn't care enough to make a $5 monthly payment. They would tell their grandparents they were paying when they werent. So I would get the grandparent on the phone, 3 way the grandkid and tell the grandparent to be quiet, then bust out the grandkid and have them admit everything while the grandparent was listening on the other line. It cracks me up when Dave slanders collectors. Talk about a lack of accountability.
I learn a lot from these videos. Even though I don't have kids, if I ever have kids, I would refuse to cosign and ask them to go to junior college instead.
he went to full sail. that explains it. i've seen so many people get caught up in that school, rack up almost 100k in loans and not able to land a job because their potential employers would not look at a candidate with a degree from there. it sad but true. I live near that school and drive pass it almost everyday and i just feel bad for the students walking to and from class because most likely they will end up like this guy's son. lots of debt and no job prospect.
JD from the Howard Stern show went to Full Sail
I live in Orlando and have only ever heard that Full Sail is a total scam, and an over-priced scam at that
how could anyone with any dignity at all put their own parents on the hook for their own debt? Basically destroys their family for life.
Yeah, but it is also partly the parents' fault for deciding to co-sign in the first place.
I cosigned a loan and it was repossessed. I had no idea until I purchased my home and then had to pay a higher interest rate 🙃. That happened over 20 years ago. This family member came and asked me again a couple years ago. I refused.
When someone asks you to co-sign they are planning to stiff you with the bill. They may not even realize that they are, but they are. Don’t do it.
parents need to stop bailing out their kids problems...they will never learn how to fall and get up again.
People, do not co sign loans. The person asking you is not going to pay. Why do you think they need a co-signer?
Your first mistake was agreeing to take out a loan for him to go to Full Sail. The school of "training kids to do really fun stuff that will never make them money".
I work in payroll department. We had a lady storm in, asking why we garnished some of her wages. I found the paperwork and showed it to her. Her reply.."that's what I get for helping out my daughter" she stormed out....
Maybe she learned not to ignore her important mail after that. I guarantee she was getting first class letters and then certified letters long before her wages were garnished.
Exactly. Student loans are NOT like the Apple TOS, you can't just skim through them and click okay.
I signed a Sallie Mae Student Loan and it was the biggest mistake of my life... . There is an IRS form 1099-C which I believe can be issued to the borrower. This form means that you now have to pay taxes on the amount that is forgiven. I am not 100% sure of all of the facts but you should be aware of this possibility when a debt is totally or partially forgiven.
Arthur Seltzman you are absolutely right its best to pay the whole debt then to owe the IRS. That is really ridiculous of his son not to pay the loan
Arthur Seltzman - Correct, if you take a discount of $600 or more on a debt, your creditor can report the discount as income to the IRS. You may have additional taxes to pay, seek advice from your tax professional.
Well, it is income.
Son will not pay this back, Dad. Do not expect that. First the cost of a divorce and now this debt. It is tough.
I hope the son sees the right path and breaks his back helping this man get out of debt
His son was so very wrong. I know how he feels I didn't co sign loan for my nephew but paid a ticket he got that was 163 at time. The agreement was to give me twenty bucks every two weeks until it was paid. He never did and lie to his mom and other family members that he paid it back to me.
Family can and will hurt you financially and I hope his son grows up and help pay that loan back.
Smhl when people cosign, "agree to pay this bill back," then cry when it defaults.
My parents co-signed for my federal loans. They've never had to hear anything from Nelnet as I'm taking care of it as it should be. 22k in 2017, currently down to 5k and should be done with it in October!
Most of the time parents are just plain stupid. "As long as he/she is happy" is what matters. BS
🤣🤣🤣🤣 yep
As a college students on a budget I've learned something. NEVER take out loans. Work part time jobs, save up, then pay. You're not gonna graduate on time but you won't be in debt either.
Eh, if you're in a decent field a couple extra years of salary and experience are going to far outweigh the negatives of some modest and well-planned loans.
Tiel Master. Good for you. I’m trying to instill that in my nephew who is 20 and is going to school!
I could not do that. First there were no jobs. Second the hours I worked did not match when the courses were offered. Please do not project your circumstances onto others. I took out loans and paid off the undergrad part. After the first degree I could move ahead.
this depends but i definitely think kids should research schools/work 1 yr prior to college a 50k commitment is something to think abt
Community college and then transfer to a four year. The Army also offers a SLRP (student load repayment program) that helped me out too.
A friend of mine actually wanted to go to that same Full Sail university to study Photography. I said to him "okay, have fun being broke, jobless and in debt".
One of the biggest issues I'm hearing is his son's choice of school. Full Sail has awful student reviews and a terrible hiring rate
When you co sign there is absolutely no benefit. You're only welcoming the consequences of the contract.
If they need a cosign, they can't afford it.
I think he should either talk with his son and make him pay or else to get out of the house. He is a grown man and is trying to be self employed when he is in big debt. Not smart.
You didn't hear did you, the son is out of the house, I hate the negative stigma of "self employment" because people assume things when it's already been explained.
Sherrif whats there to assume? He is in debt and wont pay. What more you do you need to know?
Even i knew at 11th grade that animation didnt have a job market, and that was in 2014 when animation was popular on youtube.
I imagine a co-signer didn't have to pay for the loan himself at least once in history, but I have never heard of it.
@John Taylor Exaggeration, I thought it was apparent, but maybe not.
My Mom co-signed a mortgage for a sibling. Mom passed away three years ago. OMG, what a nightmare!
So who is responsible for paying it back now?
Co-signing is dumb 100% of the time.
I will never co-sign a loan after hearing this. Absolutely absurd
Graduated from Philadelphia University (purchased by Thomas Jefferson and no longer PhilaU). Went from $64,000 in debt to $175,000 in debt with all the interest. Paying AES $1,000 every two weeks and cannot catch up.
rip
Half of your pension to your ex is way more expensive than $53,000
Never co-sign a loan. NEVER.
I have a stupid tax too, co-signed on a car for a friend who has bad credit and he is no longer my friend. Luckily he makes all of his payments to me but getting him to refi the car with another co signer is like pulling teeth and I just want to get away from him. Lesson learned I guess
At least our reasoning and logic improve. Paid thirty thousand for a car I never drove.
Don't do parent plus (federal loan) !
You co-sign, you pay. It is quite simple.
Tim after you stack the money, tell them you are willing to take it from your 401k to pay them, but you only have x money in it. Even though you have the money in your account.
Man i really hope this worked out for this guy.
The lesson here is if you want to help someone with college just give them the money as a gift. In fact, gifts for education expenses are excluded from gift taxation if the funds are directly paid to the college but NEVER co-sign on student loans. Student loans are the worst debt out there and they are not dischargeable in bankruptcy unless you are a head on a plate or worm food.
Oh man I was really hoping for good advice on this my husband co signed for his little sister 18 years ago (before we met) now she is not paying and they are coming after us. We don’t have the money to pay it and she just doesn’t seem to care.
If you co sign something you can't grumble afterwards when it ends up on your lap..
My policy clearly states that I will only co sign if your witnesses to the signing are your great great great great grand parents.
Isn't that what co-signing is for? Isn't the assumption that you might have to pay it back if the other can't or doesn't?
Full Sail University. Well, at least he knows how to draw the pirate.
This guy's son has absolutely no respect for him. In the middle 1990's at 26 years old I bought my first home of which I paid $95.000 for it on a $20,000 a year paid hourly salary. In no way was the bank going to give me a mortgage with that low of an income, so I asked my Dad if he would co sign the mortgage, in which he did. I got the mortgage after the underwriters crunched some more numbers that I will need to do overtime, so that's what I did. All the down payment (3%) and closing cost money was strictly what I had saved up over the years, zero money from my parent's, but just a signature from Dad. Overtime+++ is what I did at 60+ hours per week every week for many years. Then suddenly things started to slow down a little at work and I could feel the financial noose starting to tighten around my neck at mortgage time, but absolutely under no circumstances was I going to give up and put this burden on my parents so I could float on easy street. I started job searching and found another job out of state making much more money. New job out of state was too far away to live in that house. So now I'm making more money where I could refinance that house on my own to get my Dad off the mortgage, and I rented it out for two more years while my tenants paid my newly minted mortgage payment. Finally sold the house a couple of years later with not so much as a single penny from parents in terms of helping me out. The point here is under no circumstances was I purposely going to make this co signing a burden on my parents because I'm either selfish or just plain lazy or felt entitled. I had way too much respect and love for my parents to ever put them in a bad financial situation, so I was going to make it work no matter what. What I learned from all this? Never buy a house dependent on overtime, luckily it all worked out in the end.
Good on ya champion, good for you!
Back when your dad was young a house was one year's wages. Go figure
i feel you, my work is 20 hours/week and barely pay enough to live on without overtime but my current overtime plus the way i live will allow me to buy a decent house cash by 30
Not trying to belittle all the hard work you put in! You did the right thing nobody could argue against that.
(I'm currently working 2 jobs, budgeting, and still struggling to pay my student loans. However I pay them myself in full)
I just don't like how you're comparing buying a house; to 18 year olds going off to college with NO idea what they're getting themselves into. Highschools these days push and push students to apply as it makes the school look better in the long run. They really go out of their way to guilt you and make it seem working a real job for 60 hours a week is the wrong thing to do. This is what the US education system is currently like.
Also, while it's not impossible; it's fairly difficult to find a job anywhere near 20k if you're between the age of 18-24. You said you were 26 when you bought your house, so remember just how much less you knew before you were more than halfway through your 20's..
(I could have been the manager of a subway instead of going to college. would be making $40k+ in salary. However that isn't the kind of stuff we're encouraged to do. I deeply regret not doing that, and putting college off until I was financially stable)
God bless your heart sir
Found out not that long ago when setting up a DTE Energy account my dad attempted to get a loan with my SSN and on top of this he wanted me to break the least rules of my apartment and let him bum off my boyfriend and I (long story). He and I are not on speaking terms. The point of my story? Don't cosign with anyone that can't pay, don't trust anyone especially blood, and be careful who you are dealing with.
The other side of that coin: NEVER ASK PEOPLE TO COSIGN FOR YOU. We asked my parents to cosign a student loan, and though we haven't let it dump on them, we paid interest only on it for 10 years and its STILL haunting them today on their credit and it taints everything you do, you're judged or side eyed by your cosigner when you retile a bathroom or whatever expense they think should come after the loan. We feel awful about it and are going to clean it up asap, but it will never be anything but a serious SNAFU.
If you co-signed... well, that's part of what happens when you do that.
if life was a game, tim lost
Shows how much ur son loves u
I can imagine my dad never speaking to me again if I did this. I hope their relationship didn’t come to that point.
Oh my gosh. Full sail? I’ve read horrible reviews about them. If my understanding is correct, they’re much like the art institutes (which I’m not sure are accredited anymore?)
Their so called accreditation isn't even trustworthy enough, so forget them, you are just going into huge debt for no benefit.
Anna Gerlach its an amazing university
My old film school went out of business and I still owe $400,000 in student loan debt and rising. The degree I have is completely worthless and I make only slightly more than minimum wage. A lot of these arts schools, like film and what not, should be trade schools and not degree programs. And a lot of careers like film and animation are all about networking and being an independent contractor, something these school never get around to teach kids about and they have to find out for themselves after college.
@@mrwednesdaynight
What film school did you go to?
*AFI* and *The Los Angeles Film School* (which is owned by Full Sail) are still running
@@shortchubbyneckbeard1681 Brooks Institute of Photography in Ventura is where I went and it is out of business. Graduating in December of 07 right at the beginning of the recession didn't help but that is only one reason I am in the spot I am today.
I collected student loans federal loans can offer a settlement between 50-75% if they are in default.
I co-signed a student loan for my son and I had to monitor his schooling and after graduation made sure he got a job and paid off his loan. As he lived with me I made sure applied as much of his salary to pay off the loan after his expenses. Because of this he was able to payoff his loan in 18 months. Co-sign not a good thing, I took a risk but I had a good understanding with him about the risk of not paying off the loan. Through money management he is able to save he is able to save $11k a year.
This is the first time I’ve heard Dave recommend a second mortgage
Full ⛵ should be no ⛵
Easiest Way To Save Money
1. Don't have kids.
You're welcome!
Have a nice day!
PS: Wrap it, before you tap it.
Hattie smartest advice ever!
unlike you, people value kids over money
Read The Millionaire Next Door. Most millionaires have families, including a spouse and children.
Truth Be $old yeah I agree, but is that the ideal dream in life? Be single and just "make ends meet" until you die one day? It may be for some, but I think the best things in life are relationships. I'm working hard and investing to become wealthy, but I want to become wealthy so I can give my daughter (and other future kids) a good life, have fun experiences with them and my wife, and leave a legacy. Everyone is different, but to me that's getting the most out of life.
Mike Hughes if you have them and raise them with love, when u grow old, they'll take care of you
After working to help my son get into college this past year, it is appalling what college tuition costs.
It's sad when parents buy into the college scam. In this day, they really should know better. Having to co-sign the loan already sounds like a massive red flag. The kid can go to school for almost free when including all of the scholarships and going to an affordable college.