What are the responisbilities of a co-signer of a furniture store?

Question by natashaiera: What are the responisbilities of a co-signer of a furniture store?
My fiance co-signed for some furniture for his parents, and they stopped making the payments. On top of that, we just found out today that his parents stole $ 300 from him that he had given to them to pay off a store he owed money to. AND on top of that, now they’re asking him for more money. AND he also lent his brother $ 100 that he’s not getting back. We weren’t expecting to have to pay for all of these things and I don’t want my fiance’s credit to be ruined, but his parents owe over $ 1000 to this furniture store, so what will happen to his credit if we do not pay it?

Best answer:

Answer by CatDad
By co-signing this loan your fiance has obligated himself to pay for this debt. There is no way around this. If he does not pay it, then his credit rating will be damaged. Just be glad he didn’t co-sign for something expensive like a new car…it could have been much worse. This will be a $ 1,000 lesson for your fiance about the dangers of co-signing.

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3 thoughts on “What are the responisbilities of a co-signer of a furniture store?”

  1. A co-signer is responsible to jump in and make the payments when the person that got the loan defaults and does not make the payments. That is the only reason banks want co-signers…. so they can go straight to the co-signer and get the money when the other party doesn’t make their payments.

    You two are starting your own family…. get the financial mess untangled as soon as possible. No more money being “loaned” to parents or siblings and all bills are paid by your fiance himself.
    Get a bank account and a check book and take care of your own responsibilities. Giving money to his family is an obvious mistake.
    set up a repayment plan with his parents. Where they make monthly payments to your fiance and then he turns around and makes the loan payments to the bank. This way you two know whether or not the loan is being paid on time.

    Take this as a lesson: NEVER co-sign for anybody and this includes immediate family.

  2. The responsibilities of a cosigner are to pay back all of the money that is owed, including interest, on time, unless someone else does. It is exactly the same as if he had borrowed the money himself (unless the parents pay it, on time). If it is paid on time, by anyone, his credit will be fine. If no one pays it on time, then his credit will be harmed, whether or not it gets paid later.

  3. Co-signer agrees to pay if the other party defaults. If the creditor reports to the credit bureau, the debt shows on the co-signer credit report as well.

    You fiance has no choice but to pay off the debt and then sue his parents for reimbursement.

    He’s about to learn a very expensive lesson. NEVER, EVER co-sign anything for anyone you are not legally married to. People need co-signers because they trashed their own credit. They won’t care if they trash your credit.

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