Research Shows Cosiners Lose Money Often, so Think Twice Before Signing
We all know that applying for a loan is not an easy decision. There is one more thing to consider when making your decision: 38 percent of job seekers end up paying off the debt they signed up for.
We’ve already told you when you should (and shouldn’t) sign up , but a new survey from CreditCards.com found that 4 out of 10 job seekers lose money. They surveyed over 2,000 job seekers and found:
Lost money: 38% of co-signers were forced to pay all or part of a loan or credit card bill because the main borrower did not.
Credit Damage: 28% experienced a decrease in their credit rating because the person they signed with paid late or didn’t pay at all.
Harm in relationships: 26 percent of respondents said that signing together damaged the relationship with the person for whom they signed a joint contract.
Of course, you should think twice before finalizing the agreement as a whole, but this is an even more risky option if you are already in financial difficulties and the borrower has a shaky financial history. To find out more about their survey, follow the link below.
Survey: 4 out of 10 coauthors lose money | Creditcards.com