I have a financial problem with my child / myLot

United States

March 27, 2008 8:17pm CST

He's 20. I co-signed for his truck and it's been repossessed because there was a clause in there that if he doesn't make his Visa payments they can do that. I didn't even know he had a Visa! Not only that, the limit was $1100 and they didn't cut him off till he reached $6000!!! Ok, now he doesn't have the truck, I've been making payments for him because of his other poor choices and I can let them sell the truck and eat the balance. I encouraged him to join the coast guard. He'll learn a skill and be employable after his contract is fulfilled. He'll also be debt-free after that--he's $25K into debt right now, I can hardly believe it! So, should I pay the $1,004 required to get his truck out and continue to pay the payment (plus, if he doesn't make his $134 Visa payment monthly, it gets repossessed again)? He was rejected by the Army because they want him to lost 100 pounds. He's not really overweight except on the charts. He's a body builder and has lots of muscle and looks normal. What's your advice? I have ten days to make a decision.

1 person likes this

2 responses

Scott

@callarse1 (4783)

• United States

28 Mar 08

Hello dragon54u, how are you doing? Hm, definitely if you can sell the truck and pay off the balance. Your son has done some bad choices. Since you are the co-signer if he doesn't pay it you will be held responsible. It can then go on yours and his credit report and be refered to collections. Did you teach him about financing? If not then that's why he may have so much debt. He needs to get a job asap and needs to pay off the money. And one more tip, never EVER EVER co-sign for anything nor put accounts in your name for someone else (especially family and friends). They are the first to screw you out of the money. Then the stuff goes into collections and on your credit report. Therefore, I would suggest to pay off the truck asap (if possible sell it and use the money to pay it off). And never ever co-sign or put your name on an account for someone else UNLESS you're rich and can take responsibility of the bill(s). Pablo

@dragon54u (31633)

• United States

28 Mar 08

Thanks for the response! I have now resolved never to co-sign again. My mom did it for me and I made sure that before I paid anything,the car payment was made. I thought my son would be the same way. Silly me. He has a job but after my divorce was final I moved home and bought a house. I didn't know he was $20,000 in debt! I guess I'll try to sell the truck and reduce my debt a little. I tried to teach him about finance. I was raised very poor but my husband was always comfortable and had a very casual attitude about money. He spent it as fast as he made it. I guess his attitude is what rubbed off on my son! I appreciate your taking the time to write down your thoughts on this, thank you!

Scott

@callarse1 (4783)

• United States

5 May 08

Thanks for the best response. He needs to spend like two hundred plus each month on his credit card if he owes over 20 000. Hm, too bad he doesn't spend less...or perhaps you should say something to him about that? You need to spend less money. Pablo

enchantedleppard

@enchantedleppard (1540)

• United States

31 Mar 08

Oh gosh Dragon, its such a rough choice when it involves your own children. I would never let my parents co sign on anything and not pay it, even if I was over my head I would deal with it. I think its a great thing you did for your boy and you are telling him how he can help himself. It shows that you care. I think it would be in his and your best interest to sell the truck and get what you can out of it. I wish you the best and hope things work out for you.

@dragon54u (31633)

• United States

31 Mar 08

Thanks for the good wishes! We'll get past this, I just hope he learns something as I'll be taking the biggest financial hit. He's having a lot of difficulty right now without his vehicle so I have to think he's learning something! I'm SO glad I'm not young anymore, I'd never go back to those times! Old age is good for something!