Borrower Tips
6 articles in this category
Can a co-signer be removed from a promissory note?
A co-signer comes off a promissory note only with the lender's agreement, through a signed release, a refinance, or a new note. Changing the deal without consent carries risk for the lender.
Lending money to someone on SSI: how to keep the loan from counting as income
Money given to someone on Supplemental Security Income can reduce their benefit. A real loan does not, if it meets five requirements Social Security spells out. What those requirements are, why the paperwork has to exist before the money changes hands, and what the lender should know.
How to Forgive a Family Loan Without a Tax Surprise
You lent your sister money during a rough stretch, and now you have decided you would rather just let it go. Forgiving the balance is a generous thing to do, but the IRS can treat forgiven debt as a gift, so a little planning keeps a kind gesture from becoming a tax headache. Here is how to forgive a family loan cleanly.
What to Do When a Lender Keeps Pressuring You to Pay
The calls keep coming. The messages are getting more aggressive. Maybe it's a family member who lent you money, a former business partner, or a private individual you borrowed from months ago. Whatever the source, the pressure is real and it's affecting your daily life. You want to know what you're actually obligated to do, what they're allowed to do, and where the line is between legitimate collection and harassment...
Why Borrowers Should Want a Promissory Note Too
When someone asks you to sign a promissory note before lending you money, it is easy to see it as something that benefits them. They are the ones with legal documentation of the debt. They are the ones who can take you to court if you do not pay. The note feels like it exists to protect the lender, full stop...
Can a Promissory Note Affect Your Credit Score?
When most people think about what affects their credit score, they think about credit cards, car loans, and mortgages. Promissory notes tend to fly under the radar. But depending on how a promissory note is structured and what happens with repayment, it can absolutely have an impact on your credit, or no impact at all. The difference comes down to...