A co-signer has the same responsibilities as the lease applicant. If they don’t make their payment, you are responsible for it.
Deciding to co-sign a lease or loan for a loved one is a serious matter. You may want to learn more about their other financial obligations and why the lending institution is requesting a co-signer.
Consider Co-Signing Carefully
- Will their income support making this payment?
- Is this an opportunity to discuss responsible debt management?
- Are you approaching retirement and facing a fixed income?
This lease could affect your credit report negatively should you need to borrow money in the future. Address any concerns that your loved one may default on payments.
Contact a local elder law attorney in your area for retirement planning and learn how to minimize debt to reach estate planning financial goals.