Co-Signing

lyricb · #1 (**permalink**) 11-24-2006, 12:23 AM

Don't do it!!!

When you co-sign on a loan you are legally responsible for it if the other person stops paying on it for whatever reason. So that means if you co-sign for your best pal, then he gets in an accident and is in the hospital, unable to work and pay his bills, guess who will start receiving phone calls from creditors? You.

There can also be bad blood when you get financially involved with something like this. Look at this:

I co-signed for a student loan for my daughter with the understanding that she would help pay off some of the amount owed. It has been four years and she still hasn't paid anything.

Yikes! I can't even imagine what dinners together must be like for this family!

brian · #2 (**permalink**) 11-24-2006, 04:52 PM

Absolutely right - always be very very careful with these!!

riskey58 · #3 (**permalink**) 11-25-2006, 08:00 PM

I would never co-sign for anyone. I have heard of so many people getting in trouble by doing this.It is not for me.

sweet_mayhem · #4 (**permalink**) 11-28-2006, 01:43 AM

a big number of family members develop friction between each other because of money. this is the case for some of my friends and relatives who opt to co-buy a property. tsk..tsk...

burfi · #5 (**permalink**) 11-29-2006, 05:43 AM

First of all I won't co-sign with my daughter because she is "my" responsibility. If she wants to study, I as a parent has to ensure she completes her education. It is a shame.

unique · #6 (**permalink**) 02-06-2007, 06:09 AM

I agree with burfi. As a parent, it is my responsibility to send my children to school. I should be the one borrowing the loan and not my child. As with other persons requesting me to be their co-borrower, I just tell them I won't qualify because I have my own loans to pay already.

fitnessk · #7 (**permalink**) 03-13-2007, 02:36 PM

To co-sign for someone is not something to ever be taken lightly. I known that sometimes people do not have enough credit established but are perfectly capable of paying their loan. In a case like this, I would consider co-singning.

ohioguy · #8 (**permalink**) 03-13-2007, 10:12 PM

That's good advice. I wouldn't co-sign on anything. I've seen enough "judge judy" episodes to know better.

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