Showing posts from March, 2010

$chool of Money Management, A Lesson in Co-signing

The following stories are shared to help people see and perhaps relate to different financial situations. Our characters are purely fictional (although perhaps only in name) and the stories are made-up (um, is anything really new under the sun?). Oh well, take a peek into Fred and Fiona’s lives. Hope you can take away with you some helpful back door advice. Take it away Fred and Fiona.

So here’s the scenario. One of thousands I might add. Fred and Fiona are “committed” to each other and stars are definitely blocking the view to reality. Read on. Fred has no money at the moment and very bad credit. Fred convinces Fiona that a new car would be the answer to his life’s problems and not to worry, he can come up with the money for the payments. Fiona says thoughtlessly “Yes, dear, anything for my sweet bumpkin.”

Fred then convinces Fiona to co-sign for the loan and the deed is done. They live happily never after. You see on that trip to Florida that Fred took in the new car, he met another…