Comments on: What You Need to Know Before Co-Signing a Loan

By: Kredite

Kredite — Sun, 09 May 2010 19:08:48 +0000

You should never co-sign a credit. Better try to held them get over the bad period with your consulting and without a loan.

By: Legitimate Work From Home Jobs

Legitimate Work From Home Jobs — Mon, 03 May 2010 22:18:50 +0000

Very important information, for both the co-signer and the one applying for a loan. Before co-signing, make sure you know a lot about the person making the loan: know their spending habits, know what they are buying, know if they are serious about paying the loan. You are on the hook if they have irresponsible habits.

By: pays to live green

pays to live green — Mon, 03 May 2010 13:31:33 +0000

Just as many people have said, it’s a bad decision to co-sign with a friend or family member. I know some family members need help with a loan, but maybe the fact that they need somebody to co-sign with them is a sign they shouldn’t be getting a loan.

By: Goran Web | Net Age

Goran Web | Net Age — Mon, 03 May 2010 12:54:34 +0000

Co-signing is the surest way to souring a relationship. I know far too many people who have had bad experiences due to people defaulting, so personally I will not do it, full-stop!

By: Jenna

Jenna — Sat, 01 May 2010 01:20:00 +0000

A few years ago I found myself in the middle of a divorce. I was 40 years old and had two teens with ideas of going to college. The Dad became a dead beat and as I had been a stay at home Mom I was left entirely without income. The teens could not understand and my oldest kept asking me to co-sign a loan for her so that she could go to college. I simply could not do it (on paper, the court left me with an income of $85K so I could have managed to do it but I had zero income.
To this day this has caused a massive gap in the relationship I use to have with my daughter.
I am glad that I did not co-sign as I had enough headaches just trying to get both kids thru highschool I managed to get left with $185K of debt. The worst part of all is the gap in my relationship with my kids due to money.

By: Melissa

Melissa — Thu, 29 Apr 2010 18:31:01 +0000

My experience is that education loan lenders are very flexible with payment schedules. Why not give them a call and discuss your options? They may be able to reduce your monthly payment or delay payments until you are employed again.

By: D Saltares

D Saltares — Thu, 29 Apr 2010 16:05:37 +0000

have co-sign for parent loan for my daughter’s education, got sick, i am unemployed and just started disability, do i still have to pay for this loan?if not how to let lender know that i am disabled. payments has been made up to now. thank-you for any help that can be provided. thanks again D. Saltares

By: Melissa

Melissa — Thu, 29 Apr 2010 15:19:04 +0000

I agree that knowing the purpose of the loan is crucial. Sometimes what would be more helpful than co-signing a loan would be assisting a friend or family member come up with a savings goal and plan to reach it. Maybe even providing a matching incentive if you can afford it.

By: Credit Girl

Credit Girl — Wed, 28 Apr 2010 20:46:05 +0000

Co-signing for a loan is a risky thing and I honestly wouldn’t sign for anyone unless they were my family and I knew that they were responsible with their finances.

By: Money Illusions

Money Illusions — Wed, 28 Apr 2010 19:58:45 +0000

Co-signing a loan is generally not a good idea! However, I think a parent co-signing for their teen should be considered. That of course would depend on the teen’s track record with other responsibilities.

I feel it’s better for a parent to do that than it is to hand them the keys to a car they bought for them. Requiring their teenager to make a major purchase on their own with a co-signer if necessary, teaches them greater responsibility about money, than buying a car for them.