It’s not wise to co-sign for debt for your child. Or your best friend. Or your parents. Or anybody else.
The problem is that you never know if someone else is going to follow-through on their obligation. The next thing you know they miss a payment and things are weird. They are avoiding you. You are frustrated with them. They separate themselves (or disappear). You are angry. NOT good. Now YOU’RE in debt. And more angry.
I’ve seen his story happen over & over again.
If someone can’t afford it to begin with, then they shouldn’t be buying it! Mom & Dad (or Friend) you are not being compassionate. You are helping to put them in slavery. You are enabling them to be caught in a trap that will paralyze them financially. And at the same time potentially putting your relationship in a precarious place!
If you feel led to help someone then GIVE them money. With no expectations of pay back. GIVE your kids a down payment for their house, or GIVE them $500 towards the new car. BUY the friend the used car.
Or, lovingly say: ‘Sorry, we care too much about our relationship to help you go into debt. It’s just not smart.’