Another sad story of something bad that came from co-signing, thinking they'll be responsible.
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.
ANSWER: 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.
Co-signing is STUPID! If you don’t have enough money to write a check and give them the money, then you can’t afford to co-sign. 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. So don’t be shocked when this comes back to bite you. Don’t co-sign!!!