Never Co-sign Means NEVER ! ! !
In August of 2008, I co-signed for a pickup with my younger brother so he could lower his car payment. I felt uneasy about it at the time, but with the help of some pressure and guilt, I did it. My brother made his first four payments on time, no problem; however, he was late on EVERY payment since then and often missing payments for months at a time. We did a workout loan in December of 2010 in order to lower the payment to something he could afford, which extended the life of the loan another 84 months. He missed the December payment, the January payment, the February payment... you get the idea. By November of 2011 he had made a total of maybe three payments (one every few months). After three years my relationship with my brother, and consequently the rest of my family, is almost non-existent. My parents support him and tell me I need to be more compassionate; I was told not to worry about the truck anymore because he had it taken care of. In November of 2011, I received a repossession call. I scrambled to buy more time so I could try and figure things out. My brother threatened to let it get repossessed if I didn���t help him out by paying for the truck. I told him I would only pay for the truck if I has possession of it- he dropped it off at my place the next day as a ���sacrifice��� for the restoration of our relationship- I had to pay $2500 to bring it current just to avoid repossession��� Long story short, he paid less than $4000 on the truck over three and a half years. The truck Blue Books for $17,000 but is not in the best shape. It has been posted online and sitting by the mall for three months now and I have lowered the price to about $15,000 praying that someone will buy it (your prayers for the same would be much appreciated). Oh, and I still owe $23,000; I will be using my savings to pay off the loan once I sell the truck.
PLEASE learn from my stupid tax. When someone asks you to co-sign for them, do yourself a favor and RUUUUUUN!!!