It does nothing to help their finances.
Los Angeles-Long Beach, CA (PRWEB) October 15, 2016
National Debt Relief recently shared in an article published October 5, 2016, how co-signing for a loan can be detrimental for a consumer’s finances. The article, titled “5 Reasons Why Co-Signing A Loan Is Bad For Your Financial Health,” takes a closer look at the possible consequences when people decide to co-sign for a loan.
The article starts off by pointing out that co-signing for a loan may not be the best way to keep one's financial health in good condition. It is, in fact, a dangerous option, according to National Debt Relief, and one that can open up their budget to a lot of financial complications. It it similar to putting one's funds on the line for someone who has not been able to take care of their own finances.
One clear sign that consumers need to consider when asked to co-sign for a loan is the fact that it does nothing to help their personal finances. It is not the same as co-borrowing, where each consumer has an actual need for the money. Co-signing means sharing the responsibility to pay, even if the co-signer does not have a need for the money himself or herself.
There is also a concern about credit history because if the primary borrower fails to make payments, the co-signer's credit history will also be negatively affected, possibly even before the co-signer has a chance to find out.
To read the full article, click here.