From Yahoo Finance: 2025-05-17 11:02:00

Co-signing a loan for a friend or family member may seem like a quick favor, but it can turn into a long-term financial burden. Ashley Morgan, debt and bankruptcy lawyer, warns that co-signing makes you responsible for all payments from the beginning. Late payments can negatively impact your credit score and debt-to-income ratio, affecting future loan qualifications. Even if the borrower files for bankruptcy, you’re still liable for the debt. Removing yourself as a co-signer is difficult and often requires full debt refinancing. Co-signing is a long-term financial commitment, not a short-term favor.



Read more at Yahoo Finance: 4 Financial Risks of Co-Signing Loans