Question: Kyle co-signed on a car loan three years ago with his girlfriend, and they broke up. The last payment she made was in March, and she has the car. It's only in her name, but he wants to go get it. What should he do? This is a disaster waiting to happen, according to Dave.

Dave Ramsey's advice: If your name is not on the car and you go get it, that's called grand theft auto. It's not your car. It's your loan, but it's not your car. She has to voluntarily sign the car over to you so you can get it sold. If you can't talk her into that, you'll probably have to sue her. She's destroying your credit and she's getting ready to get both of you repossessed, and then you'll both get sued.

You have to be gentle and diplomatic when talking to her, but you also have to be very firm. Driving around and paying these payments is no longer an option. This car has to be sold. Get her to sign the title over to you and get the bill of sale. It might cost you something to sell it since you're probably upside down. Be prepared to cover the difference on it, because she can't and won't.

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Question: Ellen and her husband are cutting back and getting out of debt. It looks like they could pay off $25,000 by March, but her stepson stopped paying for a loan and is now becoming the baby. Her husband works for the bank and he's worried about how this will make him look. Dave has some strong words to say about this stupidity.

Dave Ramsey's advice: They should have thought of the write-off when they loaned him the money. It will take you longer than March to pay off your debt. Co-signing is stupid and you get to pay the bill when you do it. It's not his character or his credibility that's at stake here; it's self-preservation. You owe $10,000 to this bank and you have to pay it as soon as possible. The next time this kid wants to borrow money, your husband needs to put out an email that says don't loan this kid money for any reason.

His son is not going to pay the loan, and probably never intended to. There's an attitude here. The breakdown happened, and you guys need to block family from the bank. This is a no-win situation. Never co-sign for any reason. The answer today is that you get to pay this.

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Question: Karen cosigned with her 20-year-old son to buy a truck and now he's threatening bankruptcy, not because he can't pay it but because he doesn't want to pay it. Dave has some strong words for both of them.

Dave Ramsey's advice: Never, EVER cosign. You now own a truck. Why didn't you just look at him and say no?! The best for him is not a pickup truck that he can't afford. I'd smack him sideways. This is unbelievable! You've got a kid with no character and no integrity and he's going to leave his mom out to dry. You're going to sell the truck and lose your butt. Have him sign the truck over to you, you make the payments until you sell it, and every time you make a payment, smack him on the head.

From a practical standpoint, you did something you knew you shouldn't do. Whatever you lose on this truck is going to be your stupid tax. You knew better and you caved, and I guess he knows he can because you let him over the years.

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