If someone asks you to co-sign a car loan, how fast should you run away? As fast as your legs will carry you. I’m telling you—do not, do not, and I repeat, do not co-sign for anybody. No matter how much they beg. No matter how much they promise. No matter what.

The Nightmare That Awaits

What’s the worst thing that can happen? I’ll tell you exactly what:

• They stop paying.
• The car gets repossessed.
• The car is sold at auction—for way less than what’s owed.
• Now there’s a deficiency balance.
• Guess who’s on the hook for it? You.

Lenders don’t care that you were just trying to help. They will come after you for the balance. That means:

• Wage garnishment.
• A drained bank account.
• Non-stop creditor harassment.

If you signed that loan, you are legally responsible. No excuses. No way out.

The Classic Trap: The Grandmother and the Sweet-Talking Grandson

I see this all the time. A sweet grandson comes to Grandma.

"Grandma, I just need a little help. I swear, I’ll make every single payment. I promise, promise, promise! Please, Grandma, I can’t get a car without you!"

And what happens?

• He loses his job.
• He makes a dumb decision.
• Or worse—he just doesn’t care anymore.

Now Grandma is stuck. The bank isn’t chasing him. They’re chasing her.

Bankruptcy Won’t Save You

Some people think, "Worst case, I’ll just file a Chapter 7 bankruptcy and wipe it all out."

Not so fast.

If you own a home with equity, guess what? You’re paying back every single dime of that car loan.

Make good income? The creditors will come after that too.

They’ll garnish your wages, empty your checking account, and haunt you for years.

All because you tried to help someone.

What Should You Do Instead?

If you truly want to help, give them money as a gift.

But do not co-sign. Ever.

Tell Them Your Lawyer Banned You from Co-Signing—Forever

Need a way out?

Just tell them:

"My lawyer banned me from co-signing for life."

Make something up. Blame it on me. But whatever you do—do NOT sign that loan.

No co-signing. Ever, ever, ever.