Dave Ramsey: The past can haunt you
My wife co-signed on a loan for an old boyfriend five or six years ago. Now, a collection agency is after her for the remaining $5,000. We make about $90,000 a year combined, and our attorney recommended we file Chapter 7 bankruptcy. The idea of filing bankruptcy scares me. Is there a better way to handle this?
This collector bought the loan for pennies on the dollar. It’s an old debt, and that means there are very low expectations for collection. At the same time, your wife did co-sign for the loan.
Chances are they’ll threaten to sue and all that stuff, but my guess is you can work out something on an old loan like this. It may take a couple of weeks and a little patience, but that’s a small price to pay if it saves you $2,500.
Apps and stocks?
What do you think about online investing apps, and the way they allow you to jump in and out of stocks for really low fees?
There’s a ton of research out there showing that people who play individual stocks on their own — or with their broker, or with a golfing buddy — see a rate of return of about seven percent on average. You can make anywhere from 10 to 14 percent, on average, with good growth stock mutual funds.
— Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 13 million listeners each week on 585 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.