Her credit may look all right now, but it will probably be difficult to get a big loan, for a house or car in the future, and if she does she will have to pay premium interest rates. Banks have to make up for these losses by increasing fees for everyone, so people who "walk away" from loans hurt all of us. The bank won't lose money. She would be wise to work with the bank if they are now willing to do this, and she probably should go easy charging things because it doesn't sound like she's very good with money. Is she living in the house, or did she walk away from that too? |