George Guerin discusses the perils of cosigning on PolicyGenius.com
The following content originally appeared on PolicyGenius.com on October 6, 2016.
Cosigned a relative's loan? Here's how to deal with the default
By Paul Sisolak
Cosigning is one of those instances where acting on your emotions can place your finances at risk. You really want to help that family member, friend or loved one get approved for a loan they may not qualify for, so deciding to cosign for them can seem like an act of generosity when their chances of obtaining new credit are next to nil...
“If you’re the cosigner, you’re the co-borrower,” says Certified Financial Planner George Guerin. “You’re on the hook from it going into default. You have only one choice: Make the payments.” Thus, your most basic solution is to chip away at the debt yourself in any way you can.