Loan cosign
Question: Patty learned that her mom co-signed for a car with her grandson, and he defaulted. Does she own the car that the loan was for? Dave has some bad news for her.
Dave Ramsey's advice: Call the little twit up and tell him to bring the car, because you're about to sell it. You don't own the car unless you put your name on the car as an owner. When you co-sign for a loan, you are playing Russian roulette with your financial life. If the person you sign with defaults, you'll blow your money brains out.
Debt is the most aggressively product in our entire freaking culture! If the bank wants you to co-sign, it's because they know that signer won't pay. So don't be shocked when this comes back to bite you. Co-signing is STUPID! I've co-signed with people and had them co-signed for me, and it doesn't work. The twit that you're signing with won't pay, and you will. Don't co-sign!!!
Another time, I had a college student from a foriegn country living with me who had no credit record in this country. She needed a car (we were both using mine and it was not working) so I co-signed a loan for a used car for her. She is still paying for a car (2 years later) but has never missed a payment or an insurance payment. I had known her for 3 years before I did it - she was living with me and I knew where the money would come from to pay for it and that she would be responsible. She just has no background in this country to get a loan with.
Now my daughter has asked me co-sign for her - and I won't do that - I don't trust her :-)