When you co-sign a loan, you do more than just help someone you care about … you accept a financial risk. As co-signer you guarantee if the borrower fails to make payments, you’ll make them. In some states, if the borrower misses a payment, the lender can immediately collect the debt from the co-signer without first trying to collect from the borrower. If you don’t repay, the lender may sue you for payment.

Although you may feel like a third party to this transaction, it’s not the case. You are the borrower. Should the primary borrower default, your credit record could be damaged and any property designated as collateral, collected. Don’t forget … even if the borrower makes timely payments, you’re liable for the active loan. This could hinder your chances of being approved for other credit because it will be included on your list of debts.

Planning a spring break getaway? Don’t forget a Visa Travel Card – a prepaid, reloadable card which offers you a convenient alternative to Travelers Cheques or cash. Unlike cash, the travel card can be replaced if lost or stolen. At the time of purchase, you may load up to $3,000 on the card.

Use your card everywhere Visa debit cards are accepted for point-of-sale transactions or obtain cash from your card at any ATM location bearing the brand mark displayed on your card. Before you leave on your trip, stop in and see one of our Financial Services Representatives.

The results of a Pew Research Center finds 13% of parents have an adult son or daughter (age 25-34) who has moved back home.¹ Some adult children return for a short period after college while they look for work. Divorce, unemployment, a high debt load or a return to school are just a few of the other circumstances under which your child may decide to return to the nest.

The goal should be to create an arrangement that supports your children and encourages them to move on. You won’t do your children any favors by giving them a free ride forever. Have a discussion to make sure you are clear about expectations and boundaries. Discuss length of stay, plans for employment, the extent of your financial support and your child’s obligations regarding expenses, household chores and his or her social/dating life.

Consider charging rent. Even a minimal amount will prepare your son or daughter for a return to independent living and help you keep up with expenses. Write up a rental agreement with the amount spelled out. Or charge market rent—about 30% of take-home pay or 40% if you include utilities. Put all or part of it away in a savings account your child eventually can use to get his or her own place.

If you and your children hold to your agreements and continue to respect one another, you won’t encounter many problems. Resentment can arise when either parents or children are not doing what they’ve agreed upon. If things start to unravel, have a family meeting to discuss expectations and boundaries.

If you're getting a tax refund this year, it may be tempting to accept a "rapid" or "instant" refund. some national tax preparation firms offer this option, which many people don't realize is actually a high-interest loan, or refund anticipation loan (RAL)

Interest rates are astounding, ranging from 70% to 1,700% nationwide. And they usually only speed up the refund process by a couple of weeks.

1. Use it as part of a down payment on a new car.
    
2. Build your rainy day fund with a Money Market Investment Account (MMIA) for inevitable budget challenges.
    
3. Open an Individual Retirement Account (IRA) or fund a child’s Coverdell Education Savings Account (ESA).
    
4. Add it to the fund you’re building for a down payment on a house. 5. Apply it to your mortgage principal.

Something old, something new, something borrowed, something blue. A wonderful wedding tradition, unless the something borrowed is thousands of dollars to pay for the big day. Here are tips to help newlyweds avoid post-wedding money troubles:
 

1. Budget. You won’t be in for a shock if you determine ahead of time how much you can afford to spend and then stick to your plans. A number of Web sites offer printable and online wedding budget planners.
    
2. Plan for miscellaneous expenses. Be sure to factor in tips, marriage license fee, gifts for members of the wedding party, thank you cards and other smaller-ticket items that can add up.
    
3. Pay off credit cards as you use them. Using a credit card to pay for deposits in the months leading up to the wedding can be smart, but pay them down each month. If you don’t, it’s too easy to wake up after the honeymoon to find you’ve gone over budget and are starting out with a big debt.
    
4. Don’t count on cash gifts to pay for your wedding. Spend only what you can afford to on your own. Use any money you receive to get a head start on your important financial goals.
      
5. Communicate with each other. In the months leading up to the wedding, talk often and openly about the wedding budget, bills to be paid and choices to be made.

If you are concerned about someone stealing your identity or account information, don’t throw the following items in the trash: receipts from credit card purchases and financial transactions, any statements and any mail from financial institutions, insurance companies, physicians or dentists.

A clever thief could use your garbage to find valid account numbers and other information that can be used fraudulently. Here’s how you can protect yourself:

Contact SELCCU immediately if you suspect fraud, or if your Visa® Credit Card, ATM Card or Visa Check Card has been lost or stolen.

From April 1-May 31, 2010, take a $5,000 drawn on a new or existing Home Equity Line of Credit (HELOC) and you’ll be automatically entered to win either a BBQ grill, a gourmet gift basket or a $50 Home Depot gift card.**

With our HELOC you can:

*Annual Percentage Rate. Variable rate of 3.25% is based on the Prime Rate as quoted in the Wall Street Journal on Feb. 26, 2010. Rates and maximum Loan-to-Value (LTV) are determined by product, term and creditworthiness. Minimum payment=$100. Sample payment for HELOC at 3.25% A.P.R.=$9.78/$1,000 borrowed. All new loans require application and credit approval. Other rates and terms available. Rates and terms are subject to change without notice and membership is required. Offer valid only for owner-occupied, single-family residential properties in Lorain County and surrounding counties. Loans secured by liens against your property. Hazard and, if applicable, flood insurance required. Promotion valid April 1 – May 31, 2010. Apply in person, through SELCCU Online or by calling 440-324-3400 / 800-451-6315.

** No purchase necessary. Entry form available from Member Services. For complete rules, log on to www.selccu.org.