Consider This Before Co-Signing on a Loan

July 29, 2011  |  

(Black Enterprise) — According to the Federal Trade Commission, “Of the co-signed loans that default – 75% of them have to be repaid by the cosigner.” What that means is that if you decide to co-sign on a loan for someone, there is a three out of four chance that YOU will end up paying back the loan and NOT the borrower.  So, what should you do if someone asks you to co-sign on a loan? Dorethia Conner, owner of Conner Coaching, which offers personal and business financial coaching, cautions, “Don’t do it!” There is some questionable financial misinformation out there about co-signing so Conner spoke to help bring some clarity to the issue and answer some key questions.

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