Top 10 reasons not to Co-Sign on a Loan

SignHereMany say the one viable exception would be co-signing for your child or spouse, but even then you need to think of all these risks and repercussions that could arise. Even co-signing for your spouse is dangerous (50 percent of marriages end in divorce).

 

  1. All the risk, very little reward.

 

  1. The lender will sue you first if payments are not made.

 

  1. The person you help will be happy, but you will have a lot to lose.

 

  1. You can destroy a friendship or family relationship.

 

  1. You are 100 percent liable on the loan that could be a significant amount.

 

  1. You could face tax consequences if the debt is settled.

 

  1. Co-signing could make approval of a loan you might need impossible.

 

  1. You’ll be making that payment if your co-signer defaults.

 

  1. You may need to sue the other responsible party if payments are not made and you get sued.

 

  1. You have to be organized enough to keep track of the payments. Source: bankrate.com

 

At the end of the day only you decide….

 

Your Loan in the Valley

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Posted on August 5, 2014, in CUSTOMERS, NEWS and tagged , , , , , , , , , . Bookmark the permalink. Leave a comment.

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