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The Perils of Co-Signing

Is one of your butthead relatives hitting you up for money again? Is he or she asking you to co-sign for a loan? You'd better think twice before slapping on your John Hancock, according to this fact page from the Federal Trade Commission. Did you know that as many as three out of four cosigners eventually have to repay the loans they sign for? In some states, creditors can even try to collect from you first, before they attempt to collect from the borrower! Anyway, the upshot of all this is: be careful. Know the laws in your state, and make sure you trust the borrower before you enter into this arrangement. It's hard enough paying off your own debts without taking on someone else's as well.

Thu, 13 Jan 2000 03:37:50 -0800