This is part of a series of articles taking a closer look at the tips provided by Bankrate’s Debt Counselor’s 15 tips article.

2. If you co-sign, that debt is yours.
If your son or daughter wants you to co-sign for a car, apartment or loan, just say no, says Trent Graham, manager at GreenPath Debt Solutions. Debt counselors see this one a lot. Often, the other person defaults, leaving the co-signer to pick up the payments. Having to suddenly shell out an extra $350 per month can really squeeze a family budget.

This lesson should be part of Personal Finance 101 – if you sign a loan, you are responsible for it. If you co-sign a loan, you are also responsible for it. The reason why the lender wants you to co-sign isn’t because they just want you to vouch for the credibility of your child or friend or neighbor – they want you to co-sign because they want your assets and your ability to pay to back up the loan. If that person isn’t credit worthy enough to get the loan in the first place and will require you to put up your credit worthiness, perhaps they’re not ready for the loan.

Source: Bankrate