New York, NY (PRWEB) August 26, 2014
Debt Consolidation USA shares in a recent article published last August 25, 2014 ways how a consumer can get out of a cosigned loan. The article titled “5 Options To Get Out Of A Cosigned Loan” lists down financial tips for a consumer to consider when they are stuck in a cosigned loan and is looking for a way out.
The article starts off by explaining how cosigned loans is essentially a borrower with good credit standing signing in to allow someone that is less creditworthy to borrow under their name. The lender takes it as a promise that if the other borrower would not be able to make the payments, the cosigner with a good credit score will pay for the loan.
In a 2011 survey, it was found that 90% of private student loans in 2011 were co-signed by either the parent or the grandparent. This means that there are a lot of consumers in a cosigned loan with a less creditworthy borrower in tow. Theses loans are divided into two categories, revolving and non-revolving debt.
The article explains that a credit card is one perfect example of a revolving debt and one way a cosigner can get out of it is ask the other borrower to get a new credit card and transfer the balance on the new one. Another one is that the co-signee pays the credit card and closes it. The co-signee can then ask the secondary borrower to pay back the amount.
Non-revolving debt like a car loan, personal debt or student loans also has ways for a cosigner to get out of the loan. There are lenders who includes a cosigner release in the terms and conditions. This allows the cosigner with a better credit score to be released from the loan after a few on-time monthly payments on the loan.
The article also explains how loan consolidation or refinancing can release a co-signer with the better credit score out of the loan. To read the rest of the article, click on this link: [http://www.debtconsolidationusa.com/personal-finance/5-options-get-cosigned-loan.html