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CC reaffirmation and student loans

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    CC reaffirmation and student loans

    First, thanks in advance for any replies. I appreciate this forum and all the information given!

    About 2 years ago I co-signed on a SL for my nephew. Unfortunately post graduation he was late with payments. In a 18 month payment period I have gotten 5 or six calls and have made 2 of his payments so far to keep negative hits off my credit report. At first it was important as my CH was clean. Now I hear negative hits during bk can be damaging especially since a SL is not dischargeable and not subject to the automatic stay. I was wondering how bad any SL negative reports after filing bk but prior to discharge will be to my CH especially when I'm trying to rebuild credit?

    My second question is I don't want to fall into the CC trap and want to preserve my fresh start. I'm wondering if it is a good idea to reaffirm a credit card debt to a department store if the bank will let me keep the card? My payment history was unblemished and I had a $230. balance when I filed bk. I know this sound dumb but I have to ask. I want to rebuild my credit but hopefully not with high annual fee cards. Maybe I should bite the bullet and keep using my debit card.
    Last edited by mijd; 09-15-2010, 02:59 PM. Reason: spelling errors

    #2
    Do not reaffirm that card.

    They have no obligation to keep the credit limit at the same amount, allow charging, or not just close the card as soon as you've paid it off.

    Use the $230 you would reaffirm with to start your emergency fund and/or start saving for a secured card.

    Unfortunately I do not have anything helpful to share about your student loan problem.

    Good luck!

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      #3
      Unfortunately if you signed for the student loan, then you will be responsible for it. Student loans are not dischargeable. I would not reaffirm the credit card. I agree with jadams that that money is better spent on an emergency fund and/or a secured credit card post discharge.
      You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

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