antredd67 wrote:Everyone one from my mom, sister, best friend, mother in law, wife, and myself have co-signed for friends and family members. All of us have gotten screwed when the people that we helped were late paying back the loans or didn't tell us that they couldn't pay back the loan letting it go into collections. As hard as this sounds and probably to many as cruel as this sounds, don't stress yourself out, and lose your great credit rating that you have worked so hard to have by co-signing for someone.
Message Edited by antredd67 on 04-15-2007 07:52 AMYep caused a huge rift between me and my daughter that I refused to co sign on a oan for her. I simply told her I do not co sign for anything I can't afford to give away. Didn't sit very well.
antredd67 wrote:Brammy,Excellent decision you made. I am teaching my 16 y/o son now that nothing comes free. So work for it.Hey, my mom won't even give AU status...
I've seen far too many financial deals between family members go south--in both mine and my wife's family. Buying homes, buying cars, and even lending money. As such, we are adamant. We don't lend to family, we don't co-sign for family, and if the opportunity presented itself, no matter how good of a deal it was, we wouldn't go into business with family.
We've been hit up by family for money a couple of times. Each time, wife and I talked about it and both concluded, "Ya know, if we lend this money, we are pretty much giving it away as we won't ever see it again?"
If we're both OK in giving a gift, then we do it but still call it a loan. That way, with one loan "still outstanding", that borrower won't ever hit us up again for another loan. In that regard, it's worth it to gift away a few hundred bucks so as to avoid being asked again in the future.
The B.S. story is always, "I need money to pay the rent or feed the kids", but it always turns out to have been for a boat, a truck payment, some lame-brained "business venture", or other rathole.