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SALT LAKE CITY -- Tight credit markets may be prompting more people to seek co-signers for loans, but financial planners are warning it's a potential pitfall.
It's especially tough when a relative asks for help signing a loan, but Gary Gygi, financial adviser for WBB Securities, says it's still a deal that can leave you on the hook. You'll have to make sure you're ready to deal with all the consequences.
"When you are asked to co-sign, that means that the person taking out the loan has received some guidance from whoever he wants to take out the loan from that says ‘We don't trust you,'" Gygi says.
USA Today lists co-signing as one of major money missteps people can make. Gygi says the only time you may want to co-sign, is if you're trying to help a son or daughter establish credit, and only if you have the means to pay it all off.
E-mail: mgiauque@ksl.com
