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Debt consolidation can help pay down loan, though people spouses should be careful when cosigning for a loan
01/18/2010
Getting married allows people to share many aspects of their life, though they may consider being careful when contemplating taking on old debt burdens together.
In a recent posting on her website, financial expert Liz Pulliam Weston received a letter from a man who has asked his new wife to cosign on a debt consolidation loan. Though his wife has really good credit, the man has seen his credit scores fall because of his negative financial past.
Pulliam Weston noted that a debt consolidation loan could help the husband repay his debt more quickly through reducing the amount of interest he has to pay. She said it can also help him rebuild his credit score.
However, having his wife cosign for the debt consolidation puts her in the position of having her credit scores drop if the husband isn't responsible with his payments.
"That's a huge risk for her to take, so you shouldn't hold it against her if she declines," Pulliam Weston wrote.
One option the husband may consider is a consumer credit counseling service. Such services can not only help secure a debt consolidation loan, but can also help people through budgeting and financial analysis.
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