What if I told you co-signing a car loan could be the worst financial mistake of your life? You think you’re just helping out—a small favor for a friend or family member. But what happens when they stop paying? When did the car get repossessed? When the bank comes after you for every last dime?
I’ve seen it too many times—good people trapped in financial nightmares because they said yes when they should have run. So let me be clear: never, ever co-sign a car loan. No matter what. Want to know why? Let’s talk.
Transcripts
Jeff Kelly: [:
how fast should you run away from this person? And the answer is,
as fast as your legs will carry you.
Do not,
do not, and I repeat,
do not co sign
for anybody to help them purchase a car.
Don't do it, don't do it. No, no, no. What's the worst thing that can happen?
Narrator: sure to tune in next week for our next episode.
Jeff Kelly: Well, let me tell you what could happen. If that person stops paying for the car, car's gonna get repossessed. Car's gonna get sold at auction. How much do cars sell for at public auctions? Answer, not a whole lot. And there's a big, fat balance owed called a deficiency. And guess who they're gonna go after to pay for it?
it. It's a terrible idea. I [:
And then what happens? They get fired, they do something stupid, or worse, they just don't give a crap and they decide they don't want the car anymore. Well, now Grandma is left holding the bag. Well, a lot of people say, Ah, no problem, worst case scenario, I'm just gonna file the Magic Chapter 7 and wipe it all out.
n out your checking account, [:
If you want to give everything away that you own to help somebody out, okay, no problem. I have no problem that because you know what you're giving, but don't cosign ever, ever, ever, because you don't really know exactly how much you're going to owe. You don't know what that deficiency balance is going to be.
You don't know how much interest is going to pile up. You don't know what the late fees are going to be. Don't risk what you may or may not have. Don't put yourself into a horrible situation. No co signing ever, ever, ever, and I mean absolutely ever. If you need to blame somebody, just tell them that your lawyer banned you from co signing for life.
ing up, but whatever you do, [:
Narrator: Thanks for joining us this week on the Bankruptcy Podcast. Make sure to visit our website, kellybankruptcy. com, where you can subscribe to the show in iTunes, Spotify, or via RSS. So you'll never miss a show. While you're at it, if you found value in this show, we'd appreciate a rating on iTunes. Or, if you'd simply tell a friend about the show, that would help us out too.
If you liked this show, you might want to check out our guide to bankruptcy in Georgia. Helping people get out of debt. Available at kellycanhelp. com slash welcome. Be sure to tune in next week for our next episode.
