The Odds Are Against You

 

Statistics show that the cosigner winds up paying for nearly three out of four cosigned loans that end up in default.  The lender can go directly to the cosigner, bypassing the original applicant immediately.  Furthermore, all the typical methods available to the lender for debt collection can be directed solely toward the cosigner. 

 

They may include some of all the following: adding late charges, collection costs, legal fees, suing you, garnishing your wages, listing the default on your credit record, etc.  Remember that the cosigner of the loan is really nothing more than a “co-borrower.”  He assumes all the responsibilities involved in the loan, but instead of receiving the loan, receives nothing.  All the risk, but none of the reward!

 

 

Your thoughts on this subject?  Your comments appreciated!

Content © Rich Brott, 2011

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