I talk to individuals all the time who ask questions like, "I co-signed for a loan and need to figure out how to get my name off now because collectors are calling me." Let me take a moment to educate on what it means to co-sign.

When you co-sign for a loan you are essentially a co-applicant. The reason your friend or family member needs a co-signer is because they have poor or insufficient credit. The bottom line is they are a bad credit risk for the lending institution who has decided to deny their credit application unless someone else joins the equation. The whole point of a co-signer is so the creditor has another person to go after for payments in case the primary applicant lives up to their credit history and defaults on payments.

There are only two ways a creditor is going to let you out of your obligation as a co-signor: The primary applicant might decide to make good on payments and create a good enough payment history that the financial institution is willing to refinance the account in only the individual’s name. Otherwise you’re out of luck unless you can find another lender to refinance without you. Don’t hold your breath here!

It’s too late to start asking how to have your name removed from a loan or credit card when they account is in default - that’s the last thing the creditor is going to do for you. Don’t be surprised when they begin to call you to ask for payments when they’re unsuccessful at collecting from the primary borrower.

Bottom Line: Be very careful when co-signing for a loan or credit account. As a credit counselor I’ve seen it ruin the best of friendships and tear families apart. Never even consider co-signing unless you are certain you have the means to make those payments if your friend or family member decides to use their money on more important things than bills.

Isn’t it amazing what people will do to make a dollar? Organizations are shooting up all over the country promising to help you avoid foreclosure and turn around your financial situation. The problem - most of them are charging high up front fees and running away with your money without doing a thing to improve your situation. Worse than that, they are targeting low-income, minority and senior homeowners who are most vulnerable.

These organizations receive foreclosure information through public records and notices (which are readily available to anyone) and contact you. They will require you not contact your lender during this relief process, keeping you out of the loop with what is actually being done. Many are asking you to sign over the title (some don’t ask but just hide it within the paperwork) with the intention of selling it back once your payment arrears have been resolved. Most will strip any equity in the home through high, buried fees and make it next to impossible to get back on your feet.

Bottom Line: Never trust help that is unsolicited! If you’re having problems, contact your lender first to see if a workout plan can be arranged. If that doesn’t work, contact a HUD approved housing counselor to see what other alternatives might be available (a listing of approved counseling agencies can be obtained by clicking on http://www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm.) In most cases your mother’s advice still holds true: “If it’s too good to be true, it usually is!”

Media outlets are flooded with companies willing to write a debt consolidation loan using the equity in your home to pay off those high interest rate credit cards, but is this a good thing?

It’s true a home equity loan can pay off debts that carry high interest rates (provided you’ve got enough equity.) In many cases the interest paid on a home equity loan can even be deducted on your taxes. Sounds like a "no brainer," right? Not so fast!

Consider that you are not only using the equity in your home to pay off unsecured debt, you are also converting that unsecured debt into SECURED debt. Now, if something happens where you can’t afford your monthly payments, you could risk losing your home.

Here’s the typical scenario: Unless people are completely committed to living debt-free and changing spending habits, people pay off credit card balances with their home equity loan but continue with uncontrolled spending. If this happens, the typical homeowner will find within a couple of years that they not only have a new home equity payment, but new credit card balances that snuck right back to the same levels. If you thought it was difficult making those high-interest credit card payments before, try figuring out where the money is going to come from to pay for those and your new home equity loan.

Bottom Line: Determine your commitment level to change your spending habits before you apply for that home equity loan. If you’re not completely committed, find another solution to your credit problems!

Beginning February 18, 2009, analog television signals used by rooftop antennas and rabbit ears will be shut off.  An estimated 20 million Americans continue to receive their television fix through these means and will need to make plans to invest in alternatives or prepare for life without Ryan Seacrest, Oprah and all of the Desperate Housewives.

Here are the solutions:  Invest in a new Digital TV or DVD recorder, subscribe to cable or satellite service, or purchase an analog-to-digital converter.

As a credit counselor, I’ve advised many clients to forego the luxury (that’s right, I said luxury!) of cable television in order to prioritize other financial goals like paying off debt, purchasing a home or simply making ends meet with a monthly household budget.  If that’s you and you feel you just can’t live without your TV “fix,” don’t miss out on the estimated $1.5 billion dollars our government has set aside to subsidize the purchase of these converter boxes.

Bottom Line:  Watch for subsidized coupon announcements available beginning January 1, 2008, and don’t wait to request up to two per household if your sets require one.  Subsidized funds may dry up and there will be no income qualifications to request these coupons, so I’m confident we’ll see people taking advantage of the system and selling these coupons on EBay.  The price of these converters hasn’t been set yet but is expected to sell for $50 - $70 each.  If you’re on a fixed income or a tight budget, you won’t want to miss out on $40 worth of savings.

It seems there is nothing new under the sun when it comes to disaster and tragedy: global warming is blamed for devastating floods and wildfires, government is blamed for loss of lives from international conflicts and then you have the completely unexpected like last week’s tragedy on the I-35W bridge in Minneapolis, MN.

Something I’ve noticed (and I’m sure I’m not alone) when tragedy strikes is how quick people are to offer the standard, “Let me know if there is anything I can do to help.” For most, this statement is more of a common courtesy than an actual request to assist.

No one can completely understand the difficulties related to surviving these kinds of tragedies unless you’ve lived through them. What’s even more devastating is when life goes on after the loss of a loved one, life savings or personal property and the victim left standing is holding a mountain of problems that will stretch far into the future. Realistically, if you’re coping with grief, making sure a credit card bill is paid on time could easily be the least of your worries.

If you really want to help a friend or loved one facing a devastating crisis, pull them aside during a moment of quietness and offer to step in to take control of their household finances until they get back on their feet. Opening mail and writing checks for bills might seem insignificant but the amount of headache and frustration you’ll save them in the future will be immeasurable.

The New York Times recently published an article (read article here: http://www.nytimes.com/2007/07/31/opinion/31tue1.html?_r=1&oref=slogin) discussing the atrocities against consumers by the credit card industry brought to light this spring by Democratic Senator Carl Levin of Michigan.

While I agree with the alarmist perspective of the author on this subject, I won’t be holding my breath waiting for legislation that will cap penalty interest rates at 7% above previous rates or capped charges for consumers who exceed their credit limit. The savvy consumer isn’t going to wait for this legislation to pass either as a means to financial freedom.

Bottom Line: Debt free living is a choice! It’s going to require an evaluation of your current lifestyle and spending habits along with a detailed plan of attack toward debt. Determine today you won’t spend the next twenty-six to thirty years paying off that credit card debt!