Wednesday, July 30, 2014
Inquirer Daily News

Do fewer dumb things

Author and radio talk show host Dave Ramsey.
Author and radio talk show host Dave Ramsey.

Dear Dave,

My parents co-signed on government loans so I could go to college. Would my forbearance or non-payment affect their credit if I don't pay?

-Tiffany

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  • Dear Tiffany,

    Yes, it would. I'm not trying to lay a guilt trip on you, kiddo, but you'll be trashing your mom and dad's credit if you don't pay the bills on time. If they co-signed for you, they'll start getting phone calls, too, if you don't do the right thing and pay back these loans.

    The truth is, your mom and dad shouldn't have co-signed for you in the first place. There's only one reason lenders want a co-signer, and that's because they're afraid the person taking out the loan won't be able to pay back what's owed.

    My goal here isn't to beat you up, Tiffany. It's to give you information that you-and your parents-need in order to make different, smarter decisions in the future. We all do dumb things sometimes. In the past, I did some really dumb things with very large numbers attached. The goal is to grow, learn, and try to use what we learn in order to do fewer dumb things in the future.

    -Dave

    Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

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