Tuesday, September 2 2014 10:22 AM EDT2014-09-02 14:22:40 GMT
U.S. military forces attacked the Islamic extremist al-Shabab network in an operation in Somalia on Monday, the Pentagon said, in a strike a Somali official said targeted the group's fugitive leader.Full Story >
Al-Shabab's top leader was traveling in one of two vehicles hit Monday night by a U.S. military strike, a member of the Somali Islamic extremist group said Tuesday.Full Story >
Tuesday, September 2 2014 10:01 AM EDT2014-09-02 14:01:35 GMT
A spokesman says more than 30 teens escaped from a Nashville youth detention center and 17 are still being sought.Full Story >
Thirty-two teens escaped from a Nashville youth detention center by crawling under a weak spot in a fence late Monday, and 10 of them were still on the run Tuesday, a spokesman said.Full Story >
In this economy, it's a common plea: family members begging you to co-sign a loan.
Your heart wants to say yes. But your mind is probably saying, "Hold on!" And for good reason.
Money managers say you should think twice before signing on the dotted line.
That simple signature could put your family's entire financial future at risk.
When Nicole's friend couldn't secure a student loan on her own, Nicole wanted to help. So she agreed to co-sign.
"I thought, if I could help someone get their education I should," Nicole said. "And I didn't ever foresee there being a problem with it."
Little did she know her friend would stop paying and the creditors would come after her instead --- garnishing her tax returns and ruining her credit.
"Never in a million years dreamt that somebody that I trusted would move away, stop making payments and not even bother to return my phone calls," Nicole said.
But it happens a lot more than most of us would think, thanks to our current economy.
According to the FTC, on certain types of loans, as many as three out of four borrowers now default on their obligations leaving the co-signer stuck with the bill.
"You need to keep in mind that you're being asked to take on a risk that a professional lender will not take," said Malian Mithal of the Federal Trade Commission.
The FTC recommends that you remember you're acting as more than a reference when you co-sign. You're technically acting as a co-borrower.
"If you don't have the funds to repay the loan they can take you to court, they can seize your possessions, they can garner your wages-they can even add on late fees and attorneys fees for the cost of the loan," said Mithal.
And remember: even if they don't default, co-signing will still impact your credit.
"It will look like you have a larger amount of obligations than you really have for yourself and it might hurt your ability to take on credit that you need for yourself," said Mithal.
Credit expert John Ulzheimer says if you are considering co-signing for a friend or family member you need to have a serious talk beforehand.
"I would ask them to provide you with a copy of their credit report so you can see if they are meeting their other loan obligations," he said. "And second I would absolutely ask them what kind of income they're currently making and what kind of stability do they have with their employer."
And keep checking-in after the loan is secured.
"You're going to want to start pulling your credit reports very frequently to ensure that the lender is receiving payment every single month and that they're reporting that it's being paid on time every single month."
Mithal adds, "You also can ask the lender to let you know any time the borrower defaults on any kind of payment...even one payment. So that you're not taken by surprise and you can deal with the situation as it's happening as opposed to when the entire loan goes into default."
And if the worst does happen, be prepared to take over the payments.
"You have to think about whether you can repay the loan yourself," said Mithal.
As for Nicole, the government garnished part of the debt and her friend finally paid back the loan. But it'll be years before her credit recovers.
"It's very frustrating to have bad credit as a result of someone else's mistake," she said.
Here's another possible solution: Skip the co-signing and offer a financial gift to your loved one instead. It can help them qualify for the loan or make monthly payments easier. And you may be eligible to get a tax benefit from the gift.
Monday, September 1 2014 12:29 PM EDT2014-09-01 16:29:04 GMT
Dozens of celebrity photos, including some alleged images of actress Jennifer Lawrence nude, began spreading all over the Internet on Sunday evening. Find out how to keep your photos secure here.Full Story >
Dozens of celebrity photos, including some alleged images of actress Jennifer Lawrence nude, began spreading all over the Internet on Sunday evening. Find out how to keep your photos secure here. Full Story >
Friday, July 18 2014 3:26 PM EDT2014-07-18 19:26:33 GMT
It's been an extremely difficult day for family and friends as well as officers. So many people were crying, upset as the body of 5-year-old Janaya Thompson was removed from an abandoned trailer.Full Story >
It's been an extremely difficult day for family and friends as well as officers. So many people were crying, upset as the body of 5-year-old Janaya Thompson was removed from an abandoned trailer. Coroner Gary Hargrove said Janaya's body was found in a bathroom.Full Story >
Monday, September 1 2014 10:17 PM EDT2014-09-02 02:17:32 GMT
A part-time computer science UC Professor is missing and his family is desperate to find him. Kentucky State Police says no one has seen or heard from Randy Russ since Aug. 17.Full Story >
A UC Professor is missing and his family is desperate to find him. Kentucky State Police says no one has seen or heard from Randy Russ since Aug. 17 Russ is a part-time computer science professor at UC.Full Story >
Tuesday, September 2 2014 12:29 AM EDT2014-09-02 04:29:46 GMT
McDonald's, Wendy's and other fast-food restaurants are expected to be targeted with acts of civil disobedience that could lead to arrests Thursday as labor organizers escalate their campaign to unionize...Full Story >
McDonald's, Wendy's and other fast-food restaurants are expected to be targeted with acts of civil disobedience that could lead to arrests Thursday as labor organizers escalate their campaign to unionize the...Full Story >
Friday, July 18 2014 6:53 AM EDT2014-07-18 10:53:02 GMT
"This tragedy has rocked the foundation of our community." With those words, Gulfport Mayor Billy Hewes said what so many were feeling Thursday as news broke about the death of Janaya Thompson.Full Story >
"This tragedy has rocked the foundation of our community." With those words, Gulfport Mayor Billy Hewes said what so many in Gulfport and on the entire Gulf Coast were feeling Thursday as news broke about the death of 5-year-old Janaya Thompson.Full Story >
Thursday, August 21 2014 11:59 AM EDT2014-08-21 15:59:09 GMT
A car smashed into the side of a hearse during a funeral procession Wednesday, knocking it on its side. The crash happened early Wednesday afternoon in Colerain Township. A funeral procession was headedFull Story >
A car smashed into the side of a hearse during a funeral procession Wednesday, knocking it on its side.Full Story >