519-646-2222Never Co-Sign – Ever!
You should never co-sign any debt, unless you are prepared to pay the whole debt on behalf of the person you are co-signing for. If your kid, or some other family member, needs a co-signer instead of co-signing for them try educating them.
The reason a co-signer is required is because the borrower does not qualify for the loan, they lack the capacity to manage such a large amount of debt and are a bad risk. And that really means something in the country that makes more consumer debt available to people who simply can’t afford to repay it than any other country in the world.
If someone, anyone, you know can’t get a debt without a co-signer you need to understand that you are not helping them, you are digging a debt-hole not only for that person, but also for yourself. instead of cosigning just give them the money – and if you are not prepared to do that, do not co-cosign – ever!
Co-signing is giving away something you have to someone who doesn’t deserve to have it, they haven’t earned it, they probably can’t earn it and it is highly doubtful they cane repay it! The best lesson any parent can provide their children is to teach them to be responsible and capable of supporting themselves – if they can’t something was missed somewhere along the line and putting your financial life at risk isn’t the right answer.
The German philosopher Nietzsche criticized the biblical parable of the old women who gave everything she had to the church (Luke 21:1-4) – he argued that by giving “everything she had,” the widow is not achieving a higher spiritual state but is participating in “self-mutilation”
Every time money is borrowed something is given away, whether that be some kind of property that was pledged as security or future income used to repay the debt. You should never co-sign unless you fully understand that the person you are co-signing for is highly likely to leave his or her debt at your feet. Know the risks – the lender does. Just give them your money instead!