Never co-sign for a loan if you can't afford to pay it off
Many a times, friends or relatives ask you to become a co-signer for their loans. Most of the times, you agree to their requests out of love and respect. But it is not always a good decision for your financial health. The reason is, as a co-signer, you are legally obligated for a loan. So, if the primary borrower fails to repay the loan, then the lender will come after you for the payment issues. In such a situation, you will be accountable to pay off the loan. Therefore, before becoming a co-signer for a loan, check whether or not you have sufficient funds to repay the debt.
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