I Was Stupid

Hi Barefoot,

Your new book has me in stitches: “Tickets to Gaga is not an emergency”. I am 38 and I earn $90,000, and I have a gnawing money problem I need your help with. I was stupid to co-sign a vehicle loan with my ex-boyfriend. The vehicle was never in my possession and then (in 2010) it was repossessed from him. A credit company is now chasing me for 100 per cent of the amount owing, which is $11,000. I tried to negotiate it down to 50 per cent, but no joy.

What can I do?

Melinda

Well that sucks. The jerk gave you a nasty case of Sexually Transmitted Debt (STD). When you co-sign a loan and the other party doesn’t pay, the lender will indeed chase you.

However, I have good news.It sounds like this debt could be ‘statute barred’. Basically, if the debt is older than six years, under most circumstances the debt collectors can’t chase you for it. Even better, the default should have fallen off your credit card file as well.

The most important thing is not to make any kind of payment or admission of owing the debt. The other thing is to sit down with a community-based financial counsellor and check whether the debt has in fact lapsed. Call them on 1800 007 007 and book an appointment.

Finally, think of it this way: you kissed a frog but you came out of it relatively unscathed. Imagine what it would have cost if you’d married this loser!

Scott