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Along the same lines of lendingmoneyto family, you probably hear that when considering co-signing for a family member.
And youd be wise to listen, according to experts.
Below are the crucial signs for why you shouldnt move forward.
Also heres how to get out of being a co-signer on a loan.
If you cant afford to take over the full responsibility for the loan, you shouldnt co-sign.
Kevin Shahnazari, founder and CEO ofFinlyWealth, agreed.
One significant sign to consider is the family members credit history, he said.
If they have a history of late payments or defaults, he said cosigning could jeopardize your credit score.
Ive seen families torn apart because the financial strain from co-signing turned into resentment,Mueller explain.
Before co-signing, she recommended asking yourself: Can I cover this loan without jeopardizing my own financial goals?
If the answer is no, its a clear sign to decline, Mueller said.
Instead, she said to consider helping in other ways, like assisting with budgeting or findingalternative financial solutions.
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