Tuesday, December 15, 2009

To cosign or not to cosign that is the question!

This was found in LDS Living this morning! They always have a question and answer section with Dave Ramsey!!! Here is one very critical question that may come up in your life, it has in ours!

Don't Jeopardize Your Marriage with Co-signing! by Dave Ramsey

Should we co-sign on a loan?

We've been getting on track financially using your plan, but now my husband's parents wants us to co-sign on a new car. I think it's a bad idea, and have asked him to not do this. We're just on Baby Step 2, so any catastrophe would really set us back. What if my husband does this anyway? Do you have any tips on grace, or what do besides the "I told you so" lecture?

Dear Genevieve,
You're right about one thing. Co-signing for that car would be a very bad idea.
But I'm not sure this is the time for grace and understanding. I think this is one of those times when you stand in the driveway, and don't let him leave. Just tell him no! I understand that we're talking about family, and that makes it more difficult for him. But this guy needs to understand that he's putting your relationship in jeopardy if he completely goes against your wishes on something that you are adamantly against.
I'm serious about this. If the deal falls through, and there's a pretty good chance it will, it's not going to be just a setback or inconvenience for you guys. This kind of thing could potentially bankrupt your family. It could also cause big-time problems between your husband and his parents.

Do you know why banks want co-signers? It's because they don't think the people who want the loan will pay the bill! You're basically being asked to stick your head in the noose so the bank can hang you when they don't pay up!

Don't do it, Genevieve. Don't you ever co-sign for anyone, and don't let this happen. In the Contemporary English Version of Scripture Proverbs 17:18 reads, "It's stupid to guarantee someone else's loan." And that's not me speaking.

- Dave

I love Dave Ramsey, he gives such sound advice!!! He is also so clear. But it takes a lot of guts to apply thes principles, and I say principles as that is what it is. It's the right thing to do. There are untold potential problems it causes for close relationships and it plainly is not worth it.

If anyone does ever ask you, you run the risk of them trying to use guilt tactics, stay strong, it is just manipulation to get their way as they are in trouble. So so hard. Stay the course, it is for your protection. They will figure it out.

So as for Mike and I, we are convinced of the dangers and will never do it!!

Good luck and start paying attention to Dave's advice, it is well worth your time and energy. A lifetime of peace is yours and mine to have!


clan of the cave hair said...

we love Dave Ramsey! Like you said, his advice is so straight forward, there's no confusion in it. But it is HARD to always put the principals into practice. We've had to tell my in-laws "no" once before on a financial transaction that would have benefitted them greatly, but only hurt us. (they didn't see it that way.) as it turns out, they were willing to give away that which they wanted us to pay dearly for (and they DID give it away withing less than 2 weeks of the time we said no), so we were thrilled with our very grown up decision.

queendeni said...

AND it is only OUT of love you do this! Tough, but true. It IS very hard to practice, you are sooo right! Nice to see the results so quickly though!