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• It's best to resist family pressure to co-sign a loan

  Posted Nov 05 2007, 08:20 AM by Karen Datko
  Filed under: College, Debt, Credit, Family
  Pardon us while we get a broom. Our hair literally fell out when we read Stacking Pennies ' post about co-signing a family member's loans . She agreed to co-sign student loans for her sister (whose own credit had been damaged by past financial choices) and unwisely allowed the sister to sign Pennies' name on the loan documents. Thus, it was a total surprise when Pennies learned she is obligated to pay off $23,000 in loans if her sister does not make good on the debt. This is a touching story about a sister's desire to help and a wake-up call for anyone considering the same decision . You can go only so far to save other people from their own mistakes. Pennies says she regrets co-signing the loans. "But it is family, and it is money for education, and it is hard for me to turn my back on that," she writes. We can only hope this works out for the best.
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