My neighbor came over this afternoon to visit for a bit, and she related to me a financial horror story. She has a daughter who is in college in California. Her daughter needed a place to live. So my neighbors did what any loving parents would do. They co-signed on a year long apartment lease for their daughter.
Unfortunately, they learned the hard way that this isn’t a smart thing to do. The daughter’s rent is $1,400 a month. Daughter has a roommate that was supposed to pay half the rent each month. You can guess the next part. That’s right. Roommate hasn’t been paying the rent.
Now my neighbor and her husband are stuck with a $1,400 a month payment until August. This is in addition to the rent for their home here in Oregon. They are evicting the roommate, and they are hoping their daughter’s more mature, hopefully more responsible friend will move in and start paying rent. But if she doesn’t, they’re going to have some mighty high payments.
Never, ever, ever co-sign for a loan, a lease, or anything else unless you are fully prepared to take on the entire payment. I don’t care if the person who wants you to co-sign is your child, parent, grandmother, or the most honest person from your church. Life happens, and if that person is unable to pay, you’ll be stuck with the bill. Don’t learn the hard way.
If you like this article, please sign up for free weekly email updates.
I'm just an average mom, trying to live a frugal life and get out of debt. I write about things that have (and haven't) worked to improve my family's financial situation. What works for me may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
In accordance with FTC guidelines, I state that I have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.
Any references to third party products, rates, or websites are subject to change without notice. I do my best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.