Have you been asked by a family member or close friend to help them out by co-signing a loan? On the surface it may seem like a great idea to be able to help out someone in need, but take a moment to think about the consequences before signing on the dotted line. Co-signing a loan is not much different than getting a loan yourself. So not only could it affect your credit, but you could be on the hook for repayment if the original signer fails to make payments. That could really put you in a hard position. So, here's what you need to consider before co-signing a loan.
Co-Signing a Loan
From Jeremy Vohwinkle, About.com GuideSeptember 14, 2011
Explore Financial Planning
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It is easy as parents to feel bad for not helping your children, however, sometimes depending on the situation and risk involved it is the best for both. One area where a decision to cosign is often evident is for student loans. Here is some good information on assessing the <a href= "http://www.printablebudget.com/risksofcosigningastudentloan.php" title= "risks of cosigning a student loan".